airborne geophysical surveys report - sugar zone property

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2017 AIRBORNE GEOPHYSICS REPORT HARTE GOLD SUGAR ZONE PROPERTY

DAYOHESSARAH LAKE AREA WHITE RIVER, ONTARIO

NTS 42C/ 10, 11, 14 and 15

Latitude 48°48’ N, Longitude 85°10’ W

Work Completed Between January 2017 and November 2017

for

Harte Gold Corporation

8 King Street East Suite 1700

Toronto, Ontario M5C 1B5

Justin D. Bernard, B.Sc., P.Geo. December 2017

TABLE OF CONTENTS

1.0 Introduction ..................................................................................................................... 4

2.0 Property Location and Description ................................................................................... 4

2.1 Location and Access .................................................................................................... 4

2.2 Description of Mining Claims ........................................................................................ 6

2.3 Physiography and Vegetation ...................................................................................... 7

3.0 Historical Work ................................................................................................................ 7

4.0 Geological Setting ..........................................................................................................12

4.1 Regional Geology .......................................................................................................12

4.2 Property Geology ........................................................................................................14

5.0 Mineralization .................................................................................................................16

5.1 Sugar Zone .................................................................................................................16

5.2 Wolf Zone ...................................................................................................................17

6.0 Summary of Work ...........................................................................................................18

6.1 Geophysical Data Integration and Targeting ...............................................................18

6.2 Sugar Zone Airborne Trimag and Spec .......................................................................18

6.3 Eagle Showing Airborne HTEM and Mag ....................................................................12

6.4 Sugar Zone Airborne HTEM and Mag .........................................................................20

7.0 Results ...........................................................................................................................20





8.0 Conclusions and Recommendations ..............................................................................21





9.0 Costs ..............................................................................................................................22

10.0 References .....................................................................................................................22

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LIST OF FIGURES Figure 1 - Property location ........................................................................................................ 5 Figure 2 - Claim Position and Gold Showings ............................................................................ 6 Figure 3 - Regional geology of the area. ...................................................................................13 Figure 4 - Property geology map. ..............................................................................................15

LIST OF TABLES

Table 1 - Sugar Zone Trimag and Spec Survey – Line Direction and Spacing Summary ..........19 Table 2 - Eagle Showing HTEM and MAG Survey – Line Direction and Spacing Summary ......19 Table 3 - Sugar Zone HTEM and Mag Survey – Line Direction and Spacing Summary. ...........20 Table 4 – Summary of Costs. ....................................................................................................22

APPENDICIES

Appendix A – Property Claims List Appendix B – Balch Exploration Consulting Inc. Report Pertaining to Data Integration and Target Generation Appendix C – Balch Exploration Consulting Inc. Report on a Helicopter-Borne Triaxial Magnetometer and Spectrometer Survey at White River, Ontario Appendix D – Balch Exploration Consulting Inc. Report on a Helicopter-Borne Time Domain Electromagnetic and Magnetic Survey at the Eagle Showing Appendix E – Balch Exploration Consulting Inc. Report on a Helicopter-Borne Time Domain Electromagnetic and Magnetic Survey at White River, Ontario Appendix F – Invoices

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Executive Summary

On January 25th, 2017 Balch Exploration Consulting Inc. (BECI) completed a geophysical data integration and targeting review for Harte Gold Corporation (Harte) on their Sugar Zone property (“the Property”) located in the Dayohessarah Lake area, north of White River, Ontario. The review focused on all geophysical surveys completed on the Property since 2008. The intent of the review was to combine all available geophysical data with geological data to further define exploration targets for gold mineralization. Based on the recommendations by BECI, three airborne geophysical surveys were flown between April 4th, 2017 and July 30th, 2017.

A total of $738,682 was spent on the airborne geophysical surveys, geophysical data integration, targeting and report writing.

The Property is located within the Dayohessarah Greenstone Belt (“DGB”). This greenstone belt is part of the larger, east trending Schreiber-White River Belt of the Wawa Subprovince of the Superior Craton. The DGB is situated between two larger greenstone belts; the Hemlo Greenstone Belt to the west and the Kabinakagami Greenstone Belt to the east. The DGB has an active history of exploration dating back to 1969 when Canex Aerial Exploration Ltd. drilled three holes on the Property. Exploration ramped up after the discovery of Hemlo, when Pezamerica Resources commenced geophysics and drilling.

In 1998, Harte entered into an option agreement on most of the unpatented mining claims comprising the Dayohessarah Lake Property, including the Sugar Zone. Harte subsequently entered into a Joint Venture agreement with Corona Gold Corporation.

1.0 Introduction

The Sugar Zone property is located within the Dayohessarah Greenstone Belt (“DGB”). This greenstone belt is part of the larger, east trending Schreiber-White River Belt of the Wawa Subprovince of the Superior Craton. The property is situated approximately 25km northeast of the Town of White River, Ontario and 60km east of the Hemlo gold camp.

This report has been written to summarize all activities related to airborne geophysics occurring between January 25th, 2017 and July 30th, 2017 by Harte Gold Corp on the Dayohessarah Lake property.

All UTM coordinates are in NAD 83, Zone 16N projection unless otherwise stated.

2.0 Property Location and Description

2.1 Location and Access

The Dayohessarah Lake Property is situated approximately 25 km northeast of the Town of White River (Trans-Canada Highway No. 17) and 60 km east of the Hemlo gold camp. The Property is approximately equidistant from Sault Ste. Marie to the south-east and Thunder Bay to the west (Figure 1). The overall Property encompasses NTS zones 42C/ 10, 11, 14 and 15 and the gold mineralized occurrences are exposed at Latitude 48°48’ north, Longitude 85°10’ west. The property covers parts of the Odlum, Strickland, Gourlay, Tedder, Hambleton, Cooper, Nameigos, Abraham and Bayfield Townships, and falls within the Sault Ste. Marie Mining Division.

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The Property can be accessed via a series of logging roads and drill trails extending north from the community of White River. Access is also available by way of float plane, based in White River via Dayohessarah Lake or Hambleton Lake, and by helicopter based in Wawa or Marathon.

Figure 1 - Property location - Projection: WGS 84 (World Mercator)

The western and southern portions of the Property are accessible via a series of logging roads controlled by White River Forest Products Limited. Road No. 100 extends north from the western end of White River. Road No. 200 intersects Road No. 100 approximately 20 km from Highway 17 and provides access to the western and southern portions of the property. Road No. 300 intersects Road No. 100 approximately 36 km from Highway 17 and provides access to the very northern portion of the Property. Road No. 305 intersects Road No. 300 approximately 6 km from Road No. 100 and provides access to northern and eastern parts of the Property. Road access to within 400 m of the Sugar Zone is available via a small road heading south and southwest from Road No. 305 for 8.8 km. From there, access to the Sugar Zone is available via all-terrain or tracked vehicles in the summer, and snowmobiles, tracked vehicles and trucks in the winter. The distance from White River to the Sugar Zone is approximately 60 km by road.

Areas surrounding Dayohessarah, Hambleton, Strickland and Pike Lakes are designated by the Ontario Ministry of Natural Resources as ‘Restricted Access’. Locked gates on Road No. 200 and Road No. 305 control vehicular access in order to prevent access to remote lodge operations on two lakes. Permits are required for road access to most of the Sugar Zone property for mineral exploration purposes.

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2.2 Description of Mining Claims

The Dayohessarah Lake Property consists of four leases comprising 79 claims and 422 unpatented, contiguous mining claims comprising 3,108 units and 49,728 hectares (Appendix A). All claims are held in the name of Harte Gold Corporation, except for SSM 4228496, 4228497 and 4228499, which are held in the name of Lloyd Joseph Halverson and are subject to an option agreement. The Property boundaries are marked by claim lines but have not been surveyed (Figure 2).

Figure 2 - Claim Position and Gold Showings

There are two mining alienations which border parts of Harte’s current claim block. The largest (W-LL-C1521) lies to the east of the current claim area and shortly borders claim 4260617 on the east, and Hwy 631 on the west. The second alienation (No. 2847) lies completely within Harte’s current claim block, west of Dayohessarah Lake. Surface rights are held by the Crown and timber cutting rights are held by White River Forest Products Ltd.

In 1998, Harte Gold Corporation (Harte) entered into an option agreement on most of the unpatented mining claims comprising the Dayohessarah Lake Property, including the Sugar Zone. Harte Subsequently entered into a Joint Venture agreement with Corona Gold Corp.

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The original claims are subject to a 3.5% net smelter royalty (“NSR”). The Joint Venture participants, namely Corona (51%) and Harte (49%), have the option of acquiring 1.5% of the 3.5% NSR for $1.5 million, in proportion to their respective interest and have, in addition, the right of first refusal on the remaining 2.0% NSR.

Harte and Corona entered into an Option Agreement (the “Corona Option”) dated May 28, 2010, entitling Harte to acquire Corona’s 51% interest in the Sugar Zone Joint Venture upon completion of certain conditions. Effective March 10, 2010, Harte became the Operator of the Sugar Zone Joint Venture for as long as the Corona Option remained in good standing. Harte completed all required conditions and as of May 23, 2012 acquired Corona’s 51% interest to become the 100% owner and operator of all of the claims which were previously part of the Sugar Zone Joint Venture.

2.3 Physiography and Vegetation

The climate is northern boreal, with short hot summers and cold, snowy winters. Some field operations, such as drilling, can be carried out year-round while other operations, such as prospecting and mapping, can only be carried out during the late spring, summer and early autumn months.

The temperatures can range from -35ºC in the winter to +30ºC in the summer; though the mean temperatures are around -20°C to +20°C. Rainfall is about 727 mm annual average, with the wettest month being September (120 mm average). Snow is abundant, often reaching several metres with December and January having the heaviest snowfall (about 80 cm). Snow is on the ground by late October and the ice begins to thaw on the lakes by April.

The topography on the Property varies from moderate to rugged, with lake levels generally at 390 m above sea level, and occasional hills up to 480 m elevation. The overburden is generally between 0 to 20 m deep on the Property, with occasional bouldered terrain, and normally approximately 2 to 3 m overlying the Sugar Zone. Vegetation is boreal, with jack pine, fir, poplar and birch occupying dry uplands and cedar, tamarack and spruce growth on more poorly drained terrain.

3.0 Historical Work

Exploration for gold and base metals has been conducted on the Dayohessarah property since 1969. After over 10 years of very little work, exploration started to pick up on the property again in 1983, after the discovery of the Hemlo Gold camp. A complete timeline of mineral exploration on the DGB is presented below.

1969 Canex Aerial Exploration Ltd. drilled three diamond drill holes in the vicinity of the mafic/ultramafic intrusives and flows near the north end of Dayohessarah Lake. Results include an intersection of 0.326% Ni and 0.08% Cu over 5 ft. in metagabbroic rocks.

1983-1986 Pezamerica Resources Limited conducted an exploration program which included an airborne Mag and EM survey that outlined thirty-one geophysical anomalies in the area. Twenty-four of these anomalies were investigated by Teck Exploration on behalf of Pezamerica. Teck Exploration drilled nine airborne geophysical targets based on coincidental soil gold anomaly trends. In all cases, the airborne anomalies were explained by pyrite/pyrrhotite rich horizons within felsic volcanics. Hole PZ-6 returned appreciable amounts of sphalerite mineralization (0.47% Zn over 2.8 feet). None of the assayed core returned significant gold values.

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1990 Most of the DGB is staked by a prospecting syndicate.

1991 The Property is optioned from the prospectors by Hemlo Gold Mines Inc. Initial prospecting uncovered the gold-bearing Sugar Zone deposit. Based on bedrock exposure and trenching, the Sugar Zone was traced for 750 m, and a ground IP survey outlined the Sugar Zone structure extending for 1,500m.

1993 Hemlo Gold conducted a preliminary diamond drill program to test the Sugar Zone for economic gold mineralization. A grid was cut with a 6-km baseline and tie-lines ranging in spacing between 100 m and 1,000 m. Six diamond drill holes were completed totaling 800 m. All drill holes intersected significant gold mineralization in the Sugar Zone. A small trenching program is initiated on the Sugar Zone.

1994 Hemlo Gold proceeds with initial geological mapping, prospecting and a follow-up drill program. Fifteen diamond drill holes are completed on the Property, totaling 2,416 m. Eight of the drill holes intersected the Sugar Zone. An I.P. survey is completed over the southern portion of the Property, and a Mag survey is completed over the entire grid. After the exploration program, the Property was returned to the prospecting syndicate who initially staked the ground, due to legal reasons.

1998-1999 Most of the Property is optioned from the prospector’s syndicate. The mining claims were subject to a Joint Venture agreement between Corona Gold Corporation (51%) and Harte Gold Corp. (49%). Corona was the operator. The initial 313 claims are subject to a 3.5% net smelter royalty (“NSR”), and the Joint Venture participants have the option to acquire 1.5% of the 3.5% NSR for $1.5 million, and have the right of first refusal on the remaining 2.0% NSR.

Corona carries out an extensive exploration program. The existing grid was rehabilitated and new grid lines established east of Dayohessarah Lake. In total, 96.1 km of grid lines with 100 m spacing oriented at 320º azimuth are cut over the Sugar Zone area. An oriented soil sampling program is carried out on the grid, as well as mapping and sampling. Prospecting was limited to the Sugar Zone and extensions of the Sugar Zone to the south and to the north. A surface power trenching program is conducted on parts of the Sugar Zone and six trenches were excavated, washed, channel sampled and mapped in detail. A detailed Mag-VLF and reconnaissance gradient I.P. survey is performed on the Property.

A diamond drilling program totaling 9,937 m of NQ core in 53 holes is completed, mostly into and around the Sugar Zone. The drill holes cover 3 km of strike length, and intersect the zone at approximately 50 m spacing at shallow depths. A secondary purpose of the program was to follow-up low grade mineralization encountered in previous drilling by Hemlo Gold and to test previously untested/poorly tested I.P. anomalies west of the Sugar Zone and east of Dayohessarah Lake.

Preliminary Mineral Resource estimates of the Sugar Zone mineralization in the 12000 N to 13100 N area were prepared, based on the drilling program noted above. Another estimate was made, using revised and refined criteria and polygonal methods, in the spring 1999, following additional data evaluation (Drost et Al, 1998).

2003-2004 Corona conducts a diamond drilling program totaling 7,100 m in 26 holes. The drill program mostly intersects the Sugar Zone and is successful in its purpose of expanding the strike

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and dip extent of the zone, as well as increasing the level of confidence in the continuity of mineralization by in-fill drilling.

2004 Corona conducts another diamond drilling program totaling 3,588 m in 11 holes. The program is successful in increasing the mineralization extent of the Sugar Zone, as well as increasing the defined Sugar Zone depth to a vertical depth of 300 m. A new Mineral Resource estimate was completed.

2008 A helicopter airborne geophysical survey was flown over the Property by Fugro Airborne Surveys Corp., under contract from Corona. The survey used a DIGHEM multi-coil, multi-frequency electromagnetic system along with a high sensitivity cesium magnetometer. A total of 1,917 line-km were flown. It was recommended by Dave Hunt P.Geo. that compilation of historic exploration data on the remainder of the property be followed by a program of reconnaissance mapping and prospecting to evaluate the Fugro airborne conductor axes on the ground, as well as to identify additional target areas extending both north and south of existing Sugar Zone mineralization and elsewhere on the property.

2009 During March, Corona undertook a drilling program totaling 2,020 m in 10 holes. The purpose of the program was to test airborne electromagnetic conductors, magnetic anomalies, induced polarization chargeability anomalies and geologically defined possible extensions to the north and the south of the known Sugar Zone mineralization.

During July to September, a prospecting, reconnaissance geological mapping and channel sampling program was undertaken on geophysical targets outlined by the Fugro airborne geophysical anomalies. Highlights included sampling of a float rock (Peacock Boulders) returning a value of 87.80 g/t Au, as well as grab samples from quartz veining east of the Sugar Zone returning values of 30.40 and 9.04 g/t Au.

2010 Harte Gold Corporation initiated it’s first drilling program. During March, a diamond drill program totaling 2,097.31 m in 12 holes, two of which were aborted before reaching the Sugar Zone. The program was successful in locating a high-grade area of the Sugar Zone located near surface and directly under a series of surface trenches. The drill program was also successful in determining that the Sugar Zone has significant mineralization below 300 m depth.

Ground IP is completed over a grid totaling 20,475 meters. Chargeability from the survey outlines a potential zone north of the Peacock Boulder discovery of 2009. 5 Trenches totaling 1,850 square meters were completed over and around the newly discovered Wolf Zone.

A total of 5,387.94 m of diamond drilling totaling 33 drill holes was completed on the newly discovered Wolf Zone. Results outlined a small, high grade zone with a strike length up to 600 m and a depth up to 250 meters.

2011 Between May and June 2011 two more grids totaling 60,800 meters were completed over the fold nose near the north end of the of the Dayohessarah Lake Property, on the west side of Hambleton Lake. Follow up ground IP was completed on the grids by JVX Geophysical Surveys. A small 5,200 m grid was also cut and ground IP completed on the west side of Dayohessarah Lake, in an attempt to outline a Gossan Zone.

A Bore Hole survey was completed In August 2011 on eleven deep drill holes in the Sugar Zone. The Bore Hole survey outlined several conductors in the area. An airborne VTEM survey was completed at the end of August by Geotech Ltd. The survey covered the entire property and

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outlined 5 large moderate to strong conductive areas of interest. The most exciting result of the survey was a potential copper-nickel ore body below the surface, under the komatiite volcanics at the northern end of Dayohessarah Lake.

There were two main drill programs in 2011. The first was on the Sugar Zone, between February 11 to April 13, and again between July 17 and November 24, 2011, and totaled 7,885.74 meters of diamond drilling in 27 drill holes. The drilling was designed to expand the resource estimate both at depth, and to upgrade inferred resource to indicated resource. The second drill program targeted IP anomalies on the Fold Nose grid. A total of 3,430.93 meters were drilled in 15 diamond drill holes. Most IP anomalies were explained by sedimentary layers, and no significant intercepts were observed.

2012 In April 2012, Geotech Ltd. carried out a helicopter borne geophysical survey over the Dayohessarah Lake Property. The program was completed as an extension of the airborne VTEM survey conducted in 2011 which totaled 302 line-km of data over the northern parts of Dayohessarah Lake and western parts of Hambleton Lake and the shore line. The 2012 program totaled 1,153 line-km of data essentially covering the rest of the Dayohessarah Greenstone Belt.

In an effort to understand the source of the Peacock boulders, thin sections of three Peacock boulder samples were sent to Pleason Geoscience for analysis. The boulders returned assay values of 87.30 g/t Au, 52.80 g/t Au and 37.20 g/t Au. It was noted that the mineralogy and microtextures of the samples were similar to gold-bearing zones at the Hemlo and Musselwhite gold camps.

Between October 30, 2012 and November 2, 2012 four mechanical trenches were made along the surface exposure of the Sugar Zone. The purpose of the trenches was to expose enough high-grade material from the Lower Zone of the Sugar Zone for a reasonably representative blasting program. The total area of the trenches is 1,799 square meters.

During the period January 21, 2012 to July 29, 2012 a total of 6,283.92 meters were drilled in 12 diamond drill holes targeting the Sugar Zone. The drilling was carried out by Major Drilling Group International Inc. The purpose of the diamond drilling program was to expand the current Mineral Resource Estimate of the Sugar Zone at vertical depths below 400 m, and to test the continuity, grade and width of the zone at 1,000 m vertical depth. The program was successful in defining Au mineralization in both the Upper and Lower Zones with significant assay results ranging from 0.56g/t Au to 162g/t Au.

An additional 2 drill holes targeted an IP north-east of Dayohessarah Lake. These exploration holes totaled 375 meters, and did not return any significant gold values.

Two holes totaling 333 meters were drilled targeting an extension of the Wolf Zone. No significant assays were returned.

2013 Exploration in the 2013 season included a short prospecting program, where 46 samples were taken and analyzed for Au using fire assay. Two samples returned Au values of 10.2g/t and 0.73g/t.

Four holes were drilled on the Halverson Zone, totaling 1103.28m These holes targeted Cu-Ni mineralization discovered in 2011 by a VTEM survey.

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An additional 17 diamond drill holes totaling 1356m were drilled to decrease the spacing between holes in a high-grade portion of the Sugar Zone Lower Zone (called Jewelry Box). Significant intervals from this program ran from 2.77g/t Au to 28.5g/t Au over widths from 0.35m to 8.27m.

Harte continued moving forward with the permitting and optimization of the advance exploration 70,000 tonne bulk sample at the Sugar Zone. Confirmation drilling at the Jewelry Box Zone (JBZ) returned significant high-grade gold assays and enabled Harte Gold to re-design the bulk sample target areas in order to test this high-grade portion of the Sugar Zone deposit. The JBZ lies close to surface and can be developed quicker and more cost effectively.

Harte also completed road construction to provide highway access to the property and survey work associated with taking certain of the Sugar Zone property mining claims to lease. Harte is also in the process of negotiating contract mining and off-site milling agreements.

Harte completed a regional exploration program and Induced Polarization (IP) survey with the objective of finding the source of the high-grade Peacock Boulders which returned gold values up to 87 g/t. Drill targets have been identified and are scheduled to be drilled during the summer of 2014.

2014

Harte continued to advance the Sugar Zone “Advanced Exploration and Bulk Sample Project” during 2014. Efforts focused on completing the permitting associated with the amended closure plan, completing the road to the portal site and overall optimization of the mining plan developed in the 2012 Preliminary Economic Assessment.

Additional confirmation drilling at the Jewelry Box Zone (JBZ), the target area for the bulk sample, returned significant high-grade gold assays providing additional confirmation to mining contractors developing bids for the project.

2014 was a busy year of exploration, Induced Polarization and magnetometer surveys were conducted over a majority of the core mining claims and generated numerous drill targets. Follow up ground proofing and drill programs identified the Wolf Zone as the source of the high-grade Peacock Boulders and lead to the discovery of the Contact Zone, where a sericite schist was found to have Hemlo-style geochemistry and anomalous gold as well as a third mineralized zone known as the Footwall Zone and located 50 meters east of the Sugar Zone deposit.

During 2015 Harte completed additional exploration drilling that extended the Sugar Zone deposit 300 meters south of its previously defined boundary.

Harte completed additional construction work on the site access road linking the Sugar Zone deposit to Highway 631 and completed the lease application process for certain mining claims that comprise the Sugar Zone property. The leases cover the Sugar Zone deposit and immediately surrounding area and are a requirement for commercial production.

2015

2015 was a pivotal year for Harte as efforts to move the project ahead during a challenging mining market finally culminated in October with the first portal blast at the Sugar Zone. Since October the ramp was advanced to over 850 meters in length and begun shipping ore to Barrick Gold for custom milling from ore developed on the 375 level.

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With production under our bulk sampling program well underway, the commercial permitting process has begun. This process is expected to take 12-18 months which may coincide well with completion of the bulk sample program. During the intervening period, the plan is to continue with underground development which would include the ramp, underground infrastructure including ventilation and setting up stopes to be ready for mining.

The commercial production target is 600 tonnes/day. Milling options are currently being studied and a tailings facility will form part of our permit application so that an on-site milling facility can eventually be built.

Harte gold initiated a significant geophysical program between the Sugar Zone and the Wolf Zone. The Contact Zone where Hemlo-style mineralization has been found in sericite schists up to 45 meter wide and the Gossan Zone located on the west side of Dayohessarah Lake will be a focus for future exploration.

2016

2016 was a very busy year for Harte as mining was in full swing with ore being delivered to Barrick Gold Corporation’s Hemlo mill throughout the year.

Exploration efforts both near-mine and regionally are progressing at an aggressive pace with 6 drill rigs now working at the Sugar Zone and the newly discovered Middle Zone and the Wolf Zone. It is expected that the next resource update will include resources at the Middle Zone which could be incorporated into an updated mine plan and Technical Report.

4.0 Geological Setting

4.1 Regional Geology

The DGB is situated between two larger greenstone belts; the Hemlo Greenstone Belt to the west and the Kabinakagami Greenstone Belt to the east. These greenstone belts are part of the larger, east trending Schreiber-White River Belt of the Wawa Subprovince of the Superior Craton (Figure 3). The Late Archean DGB trends northwest and forms a narrow, eastward concave crescent. The belt is approximately 36 km in length and varies in width from 1.5 to 5.5 km. Principal lithologies in the belt are moderately to highly deformed metamorphosed volcanics, volcanoclastics and sediments that have been enclosed and intruded by tonalitic to granodioritic quartz-porphyry plutons.

The greenstone belt is bordered to the east by the Strickland Pluton and to the west by the Black Pic Batholith. The Danny Lake Stock borders the south-western edge of the DGB. The Strickland Pluton is characterized by a granodioritic composition, quartz phenocrysts, fine grained titanite, and hematitic fractures. The Black Pic Batholith is similar to the Strickland Pluton, but locally more potassic. The Black Pic Batholith also contains interlayers of monzogranite. The Danny Lake Stock is characterized by hornblende porphyritic quartz monzonite to quartz monzodiorite (G. M. Stott, 1999).

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Figure 3 - Regional geology of the area – Projection: WGS 84 (World Mercator).

The DGB has been metamorphosed to upper greenschist to amphibolite facies. The Strickland Pluton seems to have squeezed the greenstone belt and imposed upon it a thermal metamorphism. Most of the mafic volcanics are composed primarily of plagioclase and hornblende. Almandine garnets are widely observed in the clastic metasediments and locally, along with pyrope garnets, in the mafic volcanics (G.M. Stott, 1996a,b,c).

Alteration throughout the belt consists of diopsidation, albitization, weak magnesium biotization, weak carbonatization and moderate to strong silicification which accompanied the emplacement of the porphyry dykes/sills and quartz veining.

The belt has been strongly foliated, flattened and strained. Deformation seen in the supracrustal rocks has been interpreted to be related to the emplacement of the Strickland Pluton. Strongly developed metamorphic mineral lineations in the supracrustal rocks closely compare with the orientations of the quartz phenocryst lineations seen in the Strickland Pluton. This probably reflects a constant strain aureole imposed by the pluton upon the belt (G.M. Stott, 1996a,b,c). The strain fabric is best observed a few hundred meters from the Strickland Pluton in the Sugar Zone, which has been characterized as the most severely strained part of the belt. The Sugar Zone is defined by sets of parallel mineralized quartz veining, quartz flooding of strongly altered

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wall-rock, thin intermediate porphyry lenses and dykes/sills parallel to stratigraphy and foliation, and gold mineralization.

Foliations and numerous top indicators define a synclinal fold in the central portion of the belt. The synclinal fold has been strongly flattened and stands upright with the fold hinge open to the south and centered along Dayohessarah Lake.

4.2 Property Geology

Near Dayohessarah Lake, the belt is dominated by a basal sequence of massive to pillowed mafic volcanics, commonly with ellipsoidal, bleached alteration pods, overlain by intermediate tuff and lapilli tuff. The tuffaceous units rapidly grade upwards to a sedimentary sequence consisting of greywacke and conglomerates derived from volcanics, sediments and felsic intrusive sources (G. M. Stott, 1996a,b,c). Several thin, continuous cherty sulphide facies iron formations are found in the mafic volcanic sequence. Spinifex textured komatiitic flows stratigraphically underlie the main sedimentary sequence and can be traced around the north end of Dayohessarah Lake. Also at the north end of Dayohessarah Lake, mafic and ultramafic sills and stocks underlie the komatiites (Figure 4).

Several fine to medium grained, intermediate feldspar porphyry dykes/sills have intruded and swarmed the belt. Swarming of the intermediate porphyry dykes is more intense east of Dayohessarah Lake. Stott has interpreted the porphyry sills and associated porphyry bodies to be related to the Strickland Pluton. A smaller granitic quartz porphyry body containing some sulphide mineralization is located northwest of Dayohessarah Lake. The porphyritic texture of the dykes/sills is often nearly, or completely, obliterated by the degree of foliation in the greenstone belt, or by the degree of shear in the Sugar Zone. These intermediate dykes/sills vary in abundance across the Property, but increase in regularity within, and around, the Sugar Zone. There is also a consistent, weak pervasive silicic alteration in the intermediate intrusives, as well as consistently trace amounts of very fine grained disseminated pyrite.

The major linear structure recognized on the Property is the Sugar Deformation Zone (“SDZ”), which trends northwest-southeast for approximately 3.5 km and dips southwest between 65° and 75°. The SDZ appears to be spatially related to the Strickland Pluton and is a complex system with strain intensities varying from strongly deformed-pillow mafic volcanics to undeformed massive mafic flows to anastomosing linear areas. Stratigraphically-conformable porphyritic intermediate intrusions swarm through the SDZ. Both the mafic volcanics and the intermediate intrusives exhibit moderate linear fabrics along with hydrothermal alteration (i.e., silicification).

In general, the north-westerly striking, south-westerly dipping stratigraphy hosting the gold mineralized portions of the Sugar Zone can be subdivided into the following units:

• Hanging Wall Volcanics;

• Upper Zone (Sugar Zone mineralization);

• Interzone Volcanics;

• Lower Zone (Sugar Zone mineralization);

• Footwall Volcanics

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Figure 4 - Property geology map.

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The Hanging Wall, Interzone and Footwall volcanic horizons consist predominantly of massive and pillowed basalt flows generally striking northwest and dipping at an average angle of 64° to the southwest. Coarse to very coarse grained, locally gabbroic-textured phases form a significant component of the Hanging Wall mafic volcanic package. It is believed that these phases represent thick, slowly-cooled portions of the massive mafic flows, as they commonly grade into finer grained, more recognizable basaltic flows, and eventually even pillow flows. In much of the area which drilling on the Sugar Zone was carried out, a distinctive, very coarse grained mafic volcanic flow was observed consistently about 15 m stratigraphically above the Upper Zone. Other than this unit, specific mafic flows, as well as intermediate porphyry units, are nearly impossible to interpret/distinguish between holes.

The Upper and Lower zones range in thickness from 1.5 to 10 m, strike at 140° and dip between 65° and 75° with minor undulations.

The auriferous Wolf Zone lies in the northern extent of the SDZ, but drilling between the two zones indicates that the zones are complexly separate from each other. Like the Sugar Zone, the Wolf Zone is north-north-westerly striking and south-westerly dipping. Unlike the Sugar Zone, there is only one gold mineralized zone, and not two or more parallel zones.

A northerly-striking, sub-vertically dipping, dark grey-black, diabase dyke intrudes the older rock types in the greenstone belt, and crosscuts the SDZ. The diabase obliterates the SDZ when it is encountered. The diabase dyke is aphanitic around the edges and, where thick enough to do so, grades to a coarse grained euhedral rock in the middle of the dyke. The dyke exhibits very coarse grained greenish quartz-epidote phenocrysts up to 3 cm across throughout. The dyke is weakly pervasively magnetic. A very small amount of lateral movement of the zones has been interpreted locally on either side of the dyke, suggesting that very minor dyke-related faulting has occurred. There are at least two more diabase dykes on the property. They strike at 35 degrees across the northern portion of the belt. These dykes are up to 40 m across, and are similar in appearance and mineralogy to the dyke that cuts through the Sugar Zone.

Other than the diabase, the youngest intrusive rocks observed on the Property are white to pale grey, fine grained to medium grained and occasionally pegmatitic felsite dykes. The dykes generally consist of varying amounts of plagioclase, quartz and muscovite. These generally thin dykes strike northeast and where they intersect the SDZ, they completely wipe out the zone. These dykes are undeformed and clearly postdate the mineralization and deformation events.

5.0 Mineralization

5.1 Sugar Zone

The auriferous Upper and Lower zones of the Sugar Zone lie within the SDZ. They are defined as highly strained packages consisting of variously altered mafic volcanic flows, intermediate porphyritic intrusions and boudinaged auriferous quartz veins. The two zones range in true thickness from about 1.5 to 10 m, and are separated by 20 to 30 m of barren mafic volcanics. A high-grade section of the Lower zone between lines 13+000N and 12+900N has been the focus of a bulk sample study and is referred to as the Jewelry Box.

Each zone is made up of one or more porphyritic intrusions, flanked by altered basalt and hosting stratigraphically conformable quartz veins. Alteration within the mafic volcanic potions of the zones consists primarily of silicification (both pervasive and as quartz veining), diopsidation and

17

biotization. The porphyry units of the zones exhibit biotite and silica alteration as well, but no diopside alteration.

The Upper and Lower zones appear geologically consistent both down dip and along strike. The Lower Zone has consistently larger widths, as well as mostly consistently higher grades of gold mineralization, however both the width and the gold grade within each zone seem to follow the same trends across the zone. That is to say, that where the Upper Zone exhibits larger widths and higher gold grades, the Lower Zone also exhibits larger widths and higher gold grades. The zones are observed on surface to pinch and swell over distances of 50 m or more.

Gold mineralization mostly occurs in quartz veins, stringers and quartz flooded zones predominantly associated with porphyry zones, porphyry contact zones, hydrothermally altered basalts and, rarely, weakly altered or unaltered basalt within the Upper and Lower zones.

Fine to coarse grained specks and blebs of visible gold are common in the Sugar Zone quartz veins, usually occurring within marginal, laminated or refractured portions of the veins. The visible gold itself is often observed to be concentrated within thin fractures, indicating some degree of remobilization. Quartz veins and floods also contain varying amounts of pyrrhotite, pyrite, chalcopyrite, galena, sphalerite, molybdenite and arsenopyrite. The presence of galena, sphalerite and/or arsenopyrite is a strong indicator of the presence of visible gold. Pyrite, chalcopyrite and, rarely, molybdenite form a minor component of total sulphides and do not appear to be directly related to the presence of gold mineralization.

Other mineralized zones have been observed between, above and below the Sugar Zone Upper and Lower zones, in diamond drilling. Most of these intercepts are believed to be quartz veining originating in either the Upper or Lower zone, that have been diverted from the sheared part of the zone, up to 30 m from the main bodies of mineralization. One of these zones is the historically discovered Zoe Zone, which has been recently renamed the Lynx Zone, which lies east of the southern end of the Sugar Zone.

5.2 Wolf Zone

The auriferous Wolf Zone lies along strike of the Sugar Zone, and may represent the northern extension of the SDZ. It is defined as highly strained packages consisting of variously altered mafic volcanic flows and gabbros. The zone ranges in true thickness from 0.5 to 8 m.

The zone is made up of highly sheared mafic volcanics, and a network of intrusive, intermediate quartz-feldspar porphyry dykes/sills. Alteration in the mafic volcanic and gabbro units consists mainly of silicification (both pervasive and quartz veining), diopside alteration and magnesium-rich brown biotite alteration. Alteration within the intermediate porphyry units consist of mostly silicification, with small amounts of magnesium-rich brown biotite, and no diopside. The zone is observed in trenches to pinch and swell over 30 m.

Gold mineralization mostly occurs in quartz veins, stringers and quartz flooded zones predominantly associated with porphyry zones, and hydrothermally altered basalts and gabbros.

Fine grained specks of visible gold are occasionally observed in the Wolf Zone quartz veins. The visible gold itself is often observed to be concentrated within thin fractures, indicating some degree of remobilization. Quartz veins and floods also contain varying amounts of pyrrhotite, pyrite and occasional galena. The presence of galena is a strong indicator of the presence of

18

visible gold. Pyrite and pyrrhotite form most of the total sulphides, but do not appear to be directly related to the presence of gold mineralization.

6.0 Summary of Work

6.1 Geophysical Data Integration and Targeting

In January 2017, BECI completed a review of available airborne and ground geophysical surveys for the Sugar Zone Property. The review focused on the integration of all surveys completed since 2008, for which the original data was still available. Available surveys included; airborne Dighem EM, airborne VTEM, ground IP and resistivity and ESCAN IP and resistivity. The final report (Appendix B) provides a detailed geophysical summary of the reviewed surveys including logistical information and technical background for each survey method.

The primary focus of the report was to combine all available geophysical data with geological data, primarily drillcore, to define further exploration targets for gold mineralization. This approach has identified targets for immediate follow up, targets requiring additional work, areas of interest and new areas for staking. Recently staked claims were reviewed by BECI and recommendations were given on how to effectively explore them in the future.

Preferred geophysical methods for the exploration of Sugar Zone style mineralization are included within the report. These recommendations include the Helicopter-Borne Triaxial Magnetometer (Trimag), Spectrometer (Spec), Helicopter-Bourne Time Domain Electromagnetic (HTEM) and Magnetic (MAG) methods which BECI subsequently flew in 2017 (sections 6.2 and 6.3). Further recommendations for ideal ground geophysical survey methods were followed in 2017 and are reported in the 2017 ground geophysics report (J.D., Bernard, 2017).

6.2 Sugar Zone Airborne Trimag and Spec

In April and June of 2017, BECI flew helicopter-borne Trimag and Spec surveys for Harte Gold’s Sugar Zone Property. The survey was subdivided into a series of 9 contiguous blocks to remain orthogonal to various geologic features. The first series of blocks, totaling 8,408 line-km, was flown from April 4th to April 29th with a total of 49 flights completed. The second series of blocks, totaling 1,388.6 line-km, was flown from June 6th to June 12th with a total of 9 flights completed. The helicopter used was a Bell 206 L, owned and operated by Wisk Air Helicopters of Thunder Bay, Ontario.

Line direction and spacing details for each of the contiguous blocks are listed below (table 1). BECI has provided a detailed report of the survey which includes; survey procedures and personnel, equipment, systems used for data acquisition and deliverables (Appendix C).

19

Table 1 – Sugar Zone Trimag and Spec Survey – Line Direction and Spacing Summary

Block Line Direction Line Spacing Number of km

Main Survey N65°E 50 m lines 1,937.2 l-km

Tie N155°E 1000 m lines 99.8 l-km

Main West Survey N0°E 100 m lines 804.9 l-km


Main East Survey N0°E 100 m lines 456.3 l-km


West 1 Survey N0°E 100 m lines 229.1 l-km


West 2 Survey N0°E 100 m lines 818.3 l-km


North Survey N320°E 100 m lines 1,306.7 l-km


South Survey N0°E 100 m lines 1,305.0 l-km


East Survey N0°E 100 m lines 1,867.1 l-km


Gourlay Survey N0°E 200 m lines 325.3 l-km

Tie N90°E 6000 m lines 13.0 l-km Total 9,796.6 l-km

6.3 Eagle Showing Airborne HTEM and Mag

In July of 2017, BECI flew helicopter-borne HTEM and Mag surveys for Harte Gold’s Sugar Zone Property, specifically the Eagle Showing. The initial block (Eagle 1), totaling 57.5 line-km, was flown on July 27th. The anomalous conductor identified was subsequently reflown with a second block (Eagle 2) oriented perpendicular to strike. The Eagle 2 block, totaling 51.0 line-km, was flown on July 29th. Both blocks required one flight each. The helicopter used was a Eurocopter AS350 D2, owned and operated by Expedition Helicopters Inc. of Cochrane, Ontario.

Line direction and spacing details for each of the two blocks are listed below (table 2). BECI has provided a detailed report of the survey which includes, survey procedures and personnel, equipment, systems used for data acquisition and deliverables (Appendix D).

Table 2 – Eagle Showing HTEM and Mag Survey – Line Direction and Spacing Summary


Eagle 1 Survey N0°E 100 m lines 57.5 l-km

Tie N90°E no lines

Eagle 2 Survey N53°E 50 m lines 51.0 l-km

Tie N143°E no lines Total 108.5 l-km

20

6.4 Sugar Zone Airborne HTEM and Mag

In June of 2017, BECI flew helicopter-borne HTEM and Mag surveys for several areas of Harte Gold’s Sugar Zone Property. The survey was subdivided into a series of blocks to remain orthogonal to various geologic features. The blocks were flown in two surveys. The first series, totaling 1,542 line-km, was flown from June 23rd to June 27th using a Bell 407, owned and operated by Wisk Air Helicopters of Thunder Bay, Ontario. The second series, totaling 1,644 line-km, was flown from July 22nd to July 30th using an AS350 D2, owned and operated by Expedition Helicopters Inc. of Cochrane, Ontario. A total of 16 flights were required to complete the second series of blocks.

Line direction and spacing details for each of the blocks are listed below (table 3). BECI has provided a detailed report of the survey which includes; survey procedures and personnel, equipment, systems used for data acquisition and deliverables (Appendix E).

Table 3 – Sugar Zone HTEM and Mag – Line Direction and Spacing Summary

7.0 Results


The integration of geophysical and geological data completed by BECI was crucial to the development of Harte’s belt wide geophysical exploration strategy for 2017. This comprehensive review has successfully identified several geophysical survey methods which have proven successful in identifying Sugar Zone style mineralization and/or nearby marker horizons.


Total Magnetic Intensity (TMI) maps produced from the BECI Trimag survey have identified several magnetic features that are of exploration significance. TMI with geology superimposed

Block Line Direction Line Spacing Number of kmSurvey N0°E 100 m lines 160 l-km

Survey N0°E 100 m lines 144 l-km



Survey N0°E 100 m lines 1,542 l-km



Total 3,186 l-km

East 2

West A

West B

West C

North

South

East 1

21

has identified some important observations with respect to bedrock mapping of ultramafics, sediments and volcanic-granite contacts. Detailed survey observations are presented in Appendix C.


EM survey results from the Eagle Showing show a significant conductor trend continuous across a strike length of approximately 700m. The EM response shows high conductance suggesting pyrrhotite is present along with the known pyrite mineralization. The inferred presence of pyrrhotite is important as recent sampling contained sphalerite, chalcopyrite, pyrrhotite and abundant pyrite within a volcanic host. The second survey flown over the Eagle Showing was designed with tighter line spacing and was oriented perpendicular to the trend identified in the original survey results. BECI provides further details of the survey results in Appendix D.


BECI found that most of the flight lines contain a significant overburden response but no bedrock conductors, including the South and North blocks. However, bedrock conductors were interpreted on the East 1 and East 2 blocks. BECI provides further details of the survey results in Appendix E.

8.0 Conclusions and Recommendations


The integration of geophysical and geological data completed by BECI resulted in the identification of targets requiring immediate follow up with drilling, targets requiring additional work and areas for new staking. BECI recommended that Trimag, HTEM and Spec methods be used for airborne geophysics and targeted shallow IP / resistivity for localized areas showing promise for gold trends.


BECI recommends the TMI maps produced from the Trimag survey be compared to existing bedrock mapping and drill core to better refine the interpretation of ultramafics within and to the north of the Main Block. It can also be used to better refine volcanic-granite contacts to the east and west of the Main Block. Ground truthing of the east-west striking greenstone belt across the South Block and prospecting of magnetic highs within the East Block are suggested. BECI also recommends follow up HTEM be flow over discrete magnetic trends for possible VMS-style or Ni-Cu-PGE mineralization. Detailed recommendations are presented in Appendix C.


BECI recommends the HTEM results for the Eagle Showing be followed up with at least one shallow (200m) drillhole to test the suggested presence of pyrrhotite. Borehole electromagnetic surveys (BHEM) have been suggested for any drillholes exceeding 400m in length. Further details are provided in Appendix D.

22


BECI recommends that drill targets be developed for the areas identified within the East 1 and East 2 blocks. They should be developed for assumed Au and Ni-Cu-PGE or Au mineralization, respectively. Further details are provided in Appendix E.

9.0 Costs

A total of $738,682 was spent on the various airborne geophysical surveys as well as the geophysical data integration and targeting. Only line-km flown within claim boundaries or the 400m allowable buffer are included. Costs are summarized in table 4.

Table 4 – Summary of Costs

10.0 References

Bernard, J.B., 2017. 2017 Ground Geophysics Report, Harte Gold Sugar Zone Property, Dayohessarah Lake Area, White River, Ontario. Drost, A., Hunt, D., Roach, S. and Kaoukis, D., 1998. Report on Power Stripping for Corona Gold Corporation on the Dayohessarah Lake Project, Gourlay, Hambleton, Odlum and Strickland Townships, Sault Ste. Marie Mining Division, Ontario, NTS 42 C/14 SE. SDA Geological Services Ltd., December 31, 1998.

Survey Details Activity Total %

Geophysical Consulting 8 hours @ $125 per hour = $1,000 0%

Reporting Writing 14.5 days @ $800 per day = $11,600 2%

Flown Survey Lines 8,761 line-km @ $35 per line-km = $306,635 42%

Flight Hours 127.7 hours @ $1,285 per hour = $164,095 22%

Helicopter Landing Fee 1 fee @ $23 per fee = $23 0%

Flown Helicopter Lines 1,350 line-km @ $30 per line-km = $40,500 5%

Flown Survey Lines 2757 line-km @ $35 per line-km = $96,495 13%Flight Hours (Expedition) 38.1 hours @ $1,585 per hour = $60,389 8%

Flight Hours (Wisk Air) 29.0 hours @ $1,750 per hour = $50,750 7%Helicopter Landing Fee

(Wisk Air)1.0 fee @ $23 per fee = $23 0%

Fuel Truck, Trailer & Driver (Expedition)

8 days @ $45 per day = $360 0%

Fuel Truck Mileage (Expedition)

2,099 km @ $0.4 per km = $840 0%

Pilot Expenses - Meals (Expedition)

5 days @ $55 per day = $275 0%

Report Writing 7 days @ $670 per day = $4,690 1%

GIS Technician 2 days @ $504 per day = $1,008 0%

= $738,682 100%Total

Orix Geoscience Inc. Report Writing December 2017

Airborne HTEM & Mag Sugar Zone & Eagle Showing

Balch Exploration Consulting Inc Wisk Air Helicopters

Expedition Helicopters Inc July 22nd to 30th, 2017

Units Cost per unitGeophysical Data Integration &

Targeting Sugar Zone Property

Balch Exploration Consulting Inc January 27th, 2017

Airborne Trimag & Spec Sugar Zone Property

Balch Exploration Consulting Inc Wisk Air Helicopters

April 4th to 29th, 2017 & June 6th to 12th, 2017

23

Drost, A., Hunt, D., Roach, S. and Kaoukis, D., 1998. Report on Geology and Prospecting for Corona Gold Corporation on the Dayohessarah Lake Property Volume I, Gourlay, Hambleton, Odlum and Strickland Townships, Sault Ste. Marie Mining Division, Ontario, NTS 42 C/14 SE. SDA Geological Services Ltd., December 31, 1998.

Hunt, D.S., 2009. Report on the Summer 2009 exploration program on the Sugar Zone project. Internal report prepared for Corona Gold Corporation and Harte Gold Corp.

Laarman, J.E., 2014. Report on the Summer 2014 Geologic Mapping. Internal report prepared for Harte Gold Corp.

Middleton, R.S., Forslund, N.R., Laarman, J., 2015. 2014 Report on Diamond Drilling at the Sugar Zone Property, Dayohessarah Lake Area, White River, Ontario – Part 2. Internal Report for Harte Gold Corp., January 2015.

Ramsay, J. G. 1980. The crack-seal mechanism of rock deformation. Nature 284, 135-139.

Shegelski, R.J., 2014. Depositional history, structural geology and timing of gold mineralization of the Sugar Zone gold property, Dayohessarah Lake area, White River, Ontario. Internal Report for Harte Gold, September 2014, 21p.

Stein, H.J, Markey, R.J. and Morgan, J.W., 2000. Robust Re-Os Molybdenite Ages for the Hemlo Au Deposit, Superior Province, Canada. Journal of Conference Abstracts, v.5, p955.

Stevenson, D.B., 2017. 2017 Drilling Report, Fisher Zone, Dayohessarah Lake Area, White River, Ontario.

Stott, G.M., 1996a. Precambrian Geology of Dayohessarah Lake Area (North half), Ontario Geological Survey, Preliminary map no. 3309.

Stott, G.M., 1996b. Precambrian Geology of Dayohessarah Lake Area (Central area), Ontario Geological Survey, Preliminary map no. 3310.

Stott, G.M., 1996c. Precambrian Geology of Dayohessarah Lake Area (South half), Ontario Geological Survey, Preliminary map no. 3311.

Stott, G.M., 1999. Precambrian Geology of the Dayohessarah Lake Area, White River, Ontario. Ontario Geological Survey, Open file report 5984.

Justin Bernard

1300 Kelly Lake Road, Unit 3A/C

Sudbury, ON, P3E 5P4

Telephone: 705-885-9977

Email: [email protected]

STATEMENT OF QUALIFICATION

I, Justin Bernard, do hereby certify that:

1. I am a Project Geologist for the geological consulting firm of Orix Geoscience Inc. Canada.

2. I prepared the Assessment Report titled '2017 Airborne Geophysics Report, Harte Gold Sugar

Zone, Dayohessarah Lake Area, White River, Ontario'.

3. I hold the following academic qualifications: B.Sc. Geology (2008) University of New Brunswick.

4. I have practiced my profession since graduation in 2008.

5. I am a member of the Association of Professional Geoscientists of Ontario (Member #2847).

6. I have been involved in various exploration projects located in Canada (Ontario, New Brunswick,

Nova Scotia and Nunavut) and Guyana (Cuyuni-Mazaruni). I have focused my professional

practice on the exploration for Archean Lode Gold, Cu-Au, base metals and various industrial

minerals.

Dated this 18th Day of December, 2017.

J

Project Geologist

Orix Geoscience Inc.

Appendix A – Property Claims List

Claim # Twp. Issued Anniversary Area (Ha.) Reserve Lease # Rights PIN Reg'd Plan

1069332 HAMBLETON 01-Jun-15 31-May-36 393.38 $3,828 Lease CLM514 MR+SR 31054-0003 Pts. 1-9, 1R-13011

1069333 HAMBLETON $7,320 Lease CLM514 MR+SR


1069344 HAMBLETON $851 Lease CLM514 MR+SR, MRO

1069345 HAMBLETON $3,729 Lease CLM514 MR+SR, MRO



1232640 GOURLAY $302 Lease CLM514 MR+SR, MRO


1069327 HAMBLETON 01-May-15 30-Apr-36 282.67 $3,932 Lease CLM515 MR+SR, MRO 31053-0001 Pts. 1-9, 1R-13039



















1182994 HAMBLETON $1,458,826 Lease CLM515 MR+SR

4270162 HAMBLETON Lease CLM515 MR+SR

937770 ODLUM 01-May-15 30-Apr-36 279.83 $174 Lease CLM516 MR+SR 31078-0001 Pts. 1-11, 1R-13038

1043803 ODLUM Lease CLM516 MR+SR, MRO



1069356 ODLUM $600 Lease CLM516 MR+SR

1069357 ODLUM $600 Lease CLM516 MR+SR, MRO





1069372 ODLUM Lease CLM516 MRO





1078252 ODLUM $1,388 Lease CLM516 MR+SR, MRO

Harte Leased Claims

Claim # Twp. Issued Anniversary Area (Ha.) Reserve Lease # Rights PIN Reg'd Plan




937771 ODLUM 01-May-15 30-Apr-36 511.38 $287 Lease CLM517 MR+SR 31077-0001 Pts. 1-8, 1R-13019

937772 ODLUM $174 Lease CLM517 MR+SR


1043807 ODLUM Lease CLM517 MR+SR



1043810 ODLUM Lease CLM517 MRO




1069355 ODLUM $30,262 Lease CLM517 MR+SR







1140638 STRICKLAND $174 Lease CLM517 MR+SR, MRO

1140639 STRICKLAND $174 Lease CLM517 MR+SR, MRO

1140640 STRICKLAND $350 Lease CLM517 MR+SR

1140641 STRICKLAND Lease CLM517 MR+SR










1467.26 $4,040,292

Harte Leased Claims

Claim Number

Township Staked Anniversary Area (Units) Area (Ha.) Work Required

Reserve

4267212 COOPER 20-Jun-11 20-Jun-18 16 256 $6,400 $0

4285695 COOPER 19-Apr-17 19-Apr-19 16 256 $6,400 $0

4260622 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260623 GOURLAY 03-Dec-10 03-Dec-18 12 192 $4,800 $0

4260624 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260625 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260627 GOURLAY 03-Dec-10 03-Dec-18 11 176 $4,400 $0

4260628 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260630 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260631 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260633 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260634 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260636 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260637 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260639 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260640 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4260641 GOURLAY 03-Dec-10 03-Dec-18 16 256 $6,400 $0

4284153 GOURLAY 17-Dec-14 17-Dec-17 16 256 $3,903 $0

1055500 HAMBLETON 1988-Mar-11 31-Dec-18 1 16 $400 $0


























Harte Unpatented Claims

































1069100 HAMBLETON 1988-Jun-16 31-Dec-18 1 16 $400 $0






























1069314 HAMBLETON 1988-Jun-16 31-Dec-18 1 16 $400 $31,305













1194339 HAMBLETON 1993-Apr-26 26-Apr-19 1 16 $400 $0

1235594 HAMBLETON 2003-Nov-20 20-Nov-18 9 144 $2,980 $0

4201064 HAMBLETON 2006-Apr-21 21-Apr-18 16 256 $6,400 $0










4228496 HAMBLETON 20-Jul-09 20-Jul-18 9 144 $3,600 $2,122

4228497 HAMBLETON 20-Jul-09 20-Jul-18 10 160 $4,000 $409,814

4228499 HAMBLETON 20-Jul-09 20-Jul-18 6 96 $2,400 $0

4260626 HAMBLETON 03-Dec-10 03-Dec-18 6 96 $2,400 $0





















4284156 HAMBLETON 17-Dec-14 17-Dec-17 16 256 $0

4284157 HAMBLETON 17-Dec-14 17-Dec-17 16 256 $191 $0

937765 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $419

937766 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

937767 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

937768 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043698 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043701 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043702 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043703 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043704 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043705 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043706 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043707 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043708 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043709 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043710 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043711 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1043712 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043715 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043716 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $124

1043717 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1043814 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043815 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043816 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1043817 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1043818 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1043819 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043820 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043821 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043822 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043823 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043824 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043825 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043826 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1043827 ODLUM 1987-Dec-07 02-Jul-18 1 16 $400 $0

1043828 ODLUM 1987-Dec-07 02-Jul-19 1 16 $400 $0

1044094 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044095 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044096 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044097 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044100 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044101 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044102 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1044103 ODLUM 1987-Dec-07 31-Dec-18 1 16 $400 $0

1069359 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069360 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069361 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069362 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069375 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069376 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069378 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069379 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069380 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069381 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069382 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069383 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069384 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069385 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069386 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069387 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069388 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069389 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069390 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1069391 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078243 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078244 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078245 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078246 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078247 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078248 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078249 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078253 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078254 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078255 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078256 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078257 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078258 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078259 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078265 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078266 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078267 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078268 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078269 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078270 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078271 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078272 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078273 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078274 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078275 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078276 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078277 ODLUM 1988-Jun-16 31-Dec-18 1 16 $400 $0

1078314 ODLUM 1988-May-24 31-Dec-18 1 16 $400 $0

1078319 ODLUM 1988-May-24 31-Dec-18 1 16 $400 $0

1174765 ODLUM 1991-Oct-29 29-Oct-18 3 48 $1,200 $100

1174766 ODLUM 1991-Oct-29 29-Oct-18 2 32 $800 $0

3012217 ODLUM 2008-Mar-27 27-Mar-18 2 32 $800 $0

3012218 ODLUM 2008-Mar-27 27-Mar-19 6 96 $2,400 $0

4201077 ODLUM 2006-Apr-21 21-Apr-18 16 256 $6,400 $0

4201078 ODLUM 2006-Apr-21 21-Apr-18 16 256 $6,400 $0

4201080 ODLUM 2006-Apr-21 21-Apr-18 16 256 $6,400 $0

4201081 ODLUM 2006-Apr-21 21-Apr-18 16 256 $6,400 $0

4201083 ODLUM 2006-Apr-21 21-Apr-18 3 48 $1,200 $0

4201084 ODLUM 2006-Apr-21 21-Apr-18 16 256 $6,400 $0

4201087 ODLUM 2006-Apr-21 21-Apr-18 8 128 $3,200 $0

4260657 ODLUM 23-Dec-10 23-Dec-18 4 64 $1,600 $0

4260658 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260659 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260660 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260661 ODLUM 23-Dec-10 23-Dec-18 15 240 $6,000 $0

4260662 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260663 ODLUM 23-Dec-10 23-Dec-18 13 208 $5,200 $0

4260664 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260665 ODLUM 23-Dec-10 23-Dec-18 9 144 $3,600 $0

4260666 ODLUM 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260667 ODLUM 23-Dec-10 23-Dec-18 8 128 $3,200 $0

4260668 ODLUM 23-Dec-10 23-Dec-18 14 224 $5,600 $0

4260669 ODLUM 23-Dec-10 23-Dec-18 13 208 $5,200 $0

4270161 ODLUM 28-Jan-13 28-Jan-19 4 64 $1,600 $0

1078315 STRICKLAND 1988-May-24 31-Dec-18 1 16 $400 $0




1140648 STRICKLAND 1991-Apr-24 24-Apr-18 1 16 $400 $0












1232641 STRICKLAND 1998-Jun-04 04-Jun-18 6 96 $2,400 $671

3018389 STRICKLAND 2006-Apr-21 21-Apr-18 8 128 $3,200 $0














4260601 STRICKLAND 03-Dec-10 03-Dec-18 16 256 $6,400 $0
























4201090 TEDDER 2006-Apr-21 21-Apr-19 8 128 $3,200 $0

4260645 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260646 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260647 TEDDER 23-Dec-10 23-Dec-18 2 32 $800 $0

4260648 TEDDER 23-Dec-10 23-Dec-18 4 64 $1,600 $0

4260649 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260650 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260651 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260652 TEDDER 23-Dec-10 23-Dec-18 14 224 $5,600 $0

4260653 TEDDER 23-Dec-10 23-Dec-18 4 64 $1,600 $0

4260654 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260655 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4260656 TEDDER 23-Dec-10 23-Dec-18 16 256 $6,400 $0

4281802 NAMEIGOS 16-Feb-17 16-Feb-19 4 64 $1,600 $0

4281803 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4281805 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285663 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285664 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285665 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285666 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285667 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285668 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285669 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285670 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285671 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285672 NAMEIGOS 16-Feb-17 16-Feb-19 16 256 $6,400 $0

4285696 ABRAHAM 18-Jan-17 18-Jan-19 16 256 $6,400 $0

4285972 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285973 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285974 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285975 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285976 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285977 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285978 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285979 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285980 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285981 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285985 BAYFIELD 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285692 COOPER 18-Jan-17 18-Jan-19 16 256 $6,400 $0

4285694 COOPER 18-Jan-17 18-Jan-19 12 192 $4,800 $0

4285957 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285959 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285960 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285961 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285962 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285966 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285967 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285968 COOPER 10-Jan-17 10-Jan-19 16 256 $6,400 $0

4285982 GOURLAY 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285983 GOURLAY 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285984 GOURLAY 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285986 GOURLAY 22-Dec-16 22-Dec-18 16 256 $6,400 $0

4285958 STRICKLAND 10-Jan-17 10-Jan-19 16 256 $6,400 $0



4281812 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4281813 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4281814 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4281815 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4281816 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285697 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285698 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285699 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285700 ABRAHAM 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285673 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285674 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285675 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285676 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285677 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285678 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285679 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285680 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285681 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285682 COOPER 23-Mar-17 23-Mar-19 16 256 $6,400 $0

4285683 COOPER 23-Mar-17 23-Mar-19 16 256 $6,400 $0

4285684 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285685 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285686 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285687 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285688 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285689 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285690 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285691 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285693 COOPER 10-Mar-17 10-Mar-19 16 256 $6,400 $0

4285660 NAMEIGOS 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285662 NAMEIGOS 22-Feb-17 22-Feb-19 16 256 $6,400 $0

4285657 STRICKLAND 22-Feb-17 22-Feb-19 16 256 $6,400 $0







3108 49728 $1,222,480 $1,172,067

Appendix B – Balch Exploration Consulting Inc. Report Pertaining to Data Integration and Target Generation

Geophysical Compilation of the Harte Gold Sugar Zone

Property, Dayohessarah Lake Area, White River, Ontario with

Recommendations for Further Exploration

Prepared For:

Harte Gold Corp 8 King Street East, Suite 1700 Toronto, Ontario, M5C 1B5

Prepared By:

Balch Exploration Consulting Inc 11500 Fifth Line Rockwood, Ontario, N0B 2K0

Date:

January 25th 2017

2 | P a g e

Table of Contents

List of Figures and Tables ...........................................................................................................................................3

Executive Summary ....................................................................................................................................................5

1.0 Introduction ....................................................................................................................................................6

2.0 Property Description ......................................................................................................................................7

3.0 Exploration History .........................................................................................................................................9

3.1 Brief Discussion of Previous Geophysical Exploration ................................................................................... 10

4.0 Detailed Geophysical Summary ................................................................................................................... 11

4.1 2008 Dighem Airborne Survey....................................................................................................................... 11

4.2 2012 VTEM Airborne Survey.......................................................................................................................... 15

4.3 2014 Abitibi Ground IP, Resistivity and Magnetometer Survey .................................................................... 17

4.4 2016 Escan Ground Resistivity and IP Survey ................................................................................................ 20

5.0 2015 Field Prospecting and Sampling .......................................................................................................... 22

6.0 New Claim Prospects ................................................................................................................................... 24

6.1 East Claims Trends CT-01 and CT-02 ............................................................................................................. 26

6.2 East Claims Trends CT-03, CT-04, CT-05 and CT-06 ....................................................................................... 27

7.0 Discussion and Exploration Strategy ........................................................................................................... 27

8.0 Recommendations ....................................................................................................................................... 33

9.0 References ................................................................................................................................................... 35

10.0 Statement of Qualifications ......................................................................................................................... 36

Appendix A – List of Harte Gold Mineral Claims ..................................................................................................... 37

Appendix B – 2008 Airborne Dighem Survey by Fugro ........................................................................................... 38

Appendix C – 2012 Airborne VTEM Survey by Geotech .......................................................................................... 41

Appendix D – 2014 Ground IP, Resistivity and Magnetic survey by Abitibi Geophysics ......................................... 44

Appendix E – 2016 Ground Escan Resistivity, IP Survey by Crone Geophysics ....................................................... 48

Appendix F – Airborne Lidar Survey ........................................................................................................................ 49

Appendix G – Areas Recommended for Airborne Surveying .................................................................................. 50

3 | P a g e

List of Figures and Tables

Figure 1 - Property Location for the Harte Gold Sugar Zone Property. ......................................................................7

Figure 2 - Harte Gold mineral claims for the Sugar Zone Property. ...........................................................................8

Figure 3 - Dighem coplanar (upper) and coaxial (middle) EM responses with TMI (lower).................................... 11

Figure 4 - Magnetics (left) and EM (right) from the Dighem survey. ...................................................................... 13

Figure 5 - A close-up of the Dighem TMI with relevant features noted. ................................................................. 14

Figure 6 - Total magnetic intensity (TMI) images for VTEM (left) and Dighem (right). ........................................... 15

Figure 7 - VTEM total magnetic intensity (left) and off-time EM with bedrock conductor picks. .......................... 16

Figure 8 - VTEM bedrock conductor picks on Dighem TMI. .................................................................................... 17

Figure 9 - Abitibi IP chargeability with anomalous gold in drillhole. ....................................................................... 18

Figure 10 - Ground resistivity from the Abitibi survey. ........................................................................................... 19

Figure 11 - Ground magnetometer (TMI) from the Abitibi survey. ......................................................................... 20

Figure 12 - Escan IP (left) and resistivity (right) between Sugar Zone and Wolf Zone. ........................................... 21

Figure 13 - Escan resistivity (left) and metal factor (right) from the Sugar Zone to Wolf Zone. ............................. 22

Figure 14 - The Gossan Prospect and the PZ-5 area is shown on a magnetic image with mineral claim outlines. 23

Figure 15 - Harte mineral claims including new claims in bold magenta. ............................................................... 24

Figure 16 - High resolution magnetic coverage near the Sugar Zone Property. ..................................................... 25

Figure 17 – East Claims over VTEM magnetics showing proposed claims to cover targets CT-07 and CT-08. ....... 26

Figure 18 - Escan resistivity (left) and Dighem quadrature CP-56000 response (right). ......................................... 29

Figure 19 - Dighem magnetics with superimposed gold showings projected to surface in the Main Corridor. ..... 30

Figure 20 - Flight lines in black over mineral claims in red for the Harte Gold Sugar Zone Property. .................... 38

Figure 21 - Dighem profiles showing a bedrock conductor dipping left (west) and conductive overburden. ........ 40

Figure 22 - VTEM off-time profiles (upper) and TMI profile (lower). ...................................................................... 42

Figure 23 – VTEM flight line in black and Harte Gold mineral claims in red over the Sugar Zone Property. .......... 43

Figure 24 - Abitibi IP dipole - dipole configuration for the Harte Gold Sugar Zone. ............................................... 44

Figure 25 - IP and resistivity coverage over the Harte Gold Sugar Zone ................................................................. 46

Figure 26 – Ground-based total magnetic field colour image from the Abitibi survey........................................... 47

Figure 27 - Escan survey area also showing cut lines and gold intersections. ........................................................ 48

Figure 28 - Lidar coverage over the Sugar Zone Property. ...................................................................................... 49

Figure 29 - Recommended surveys for the North Claims. ...................................................................................... 50

Figure 30 - Proposed airborne coverage for South Claims. ..................................................................................... 51

Figure 31 - Proposed airborne coverage Mag-Grad (upper) and AirTEM (lower) for the East Claims. .................. 52

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List of Tables

Table 1 - The three newly staked areas total 22,160 Ha. Note the claim outlines are estimates only. .................. 24

Table 2 - Summary of conductor trends on the East Claims. .................................................................................. 25

Table 3 - Corners of polygons for proposed claims covering CT-07 and CT-08. ...................................................... 27

Table 4 - Cost and production estimates for the geophysical methods used by Harte Gold. ................................. 28

Table 5 - Exploration target summaries within the Main Corridor. ........................................................................ 31

Table 6 - Detailed specifications for Fugro Dighem survey. .................................................................................... 38

Table 7 --Detailed specifications for Geotech VTEM-PLUS survey. ......................................................................... 41

Table 8 - Specific details of the Abitibi Geophysics IP / resistivity and MAG survey. .............................................. 44

Table 9 - Detailed summary of Crone Geophysics Escan survey. ............................................................................ 48

Table 10 - Summary of proposed airborne surveys for North Claims. .................................................................... 51

Table 11 - Recommended airborne surveys for South Claims. ............................................................................... 51

Table 12 - Summary of proposed airborne surveys for East Claims. ....................................................................... 53

5 | P a g e

Executive Summary

Harte Gold has conducted several airborne and ground geophysical surveys over the Sugar Zone Property with the

goal of discovering additional gold mineralization. This compilation and review of the available geophysical data

(combined with the geological data, primarily drillcore) has identified several important observations with

recommendations for further exploration.

The known gold mineralization has abundant pyrrhotite which is magnetic and appears as a series of linear

magnetic trends having a general strike direction of 330o but with local variations and some apparent faulting.

These features are visible only within the high resolution Dighem survey and do not show up in the VTEM or

surface magnetometer surveys.

Both the Dighem EM and VTEM surveys show the gold mineralization does not contain enough inter-connected

sulphide to be conductive by electromagnetic methods. However, nearby sulphide-rich trends oriented sub-

parallel to the known mineralization are conductive and serve as important marker horizons.

The ground IP and resistivity surveys show the gold mineralization to be both polarizable and resistive. The high-

resolution Abitibi IP survey identified several chargeability trends including ones that cover the gold

mineralization. Not all chargeability trends are gold-bearing. High resistivity is not necessarily indicative of gold

either. But the known gold zones are identified by high chargeability and high resistivity – just not uniquely.

The Escan IP and resistivity survey produced improved images of resistivity. A review of the Escan-derived metal

factor in combination with historic drillholes led to the discovery of the Middle Zone. The Escan method is a proven

tool for gold exploration. However, trends within the Abitibi IP survey could have also led to the discovery of the

Middle Zone if the data was available in digital format and integrated into a compilation with the geological data.

Outside of the main claim block there is very little historic data that could be used to extrapolate the host volcanic

rocks to new areas. A recent VTEM survey over Kabinakagami Lake demonstrates how different the high resolution

magnetic data is from the available regional data. The host volcanic rocks are not easily identified by the regional

data and can only be correlated with the more strongly magnetic ultramafic intrusions that accompany them in

some places.

The mapped geology within the main block and beyond is partially called into question. The volcanic-granite

contact does not appear to be accurately mapped. The lack of continuous ultramafic units is contradictory to the

magnetic field data which suggests a much greater presence of these magnetic rocks. The lack of correlation

between geology and magnetics leads to the suspicion that there are more volcanics present that are currently

mapped as granite.

There are mapped geophysical trends with no drilling, anomalous gold in drillcore with geophysical trends open

along strike, ultramafic plugs that appear to terminate gold trends with no drilling beyond them and east-west

faults or structures that coincide with the limits of the Sugar Zone itself. All these factors suggest there is excellent

potential to discover new gold zones on the Sugar Zone Property with targets ready for immediate follow up,

areas that require additional data be acquired and new areas for exploration all identified in this report.

6 | P a g e

1.0 Introduction

Harte Gold Corp (“Harte Gold”) holds a 100% undivided interest in the Sugar Zone Property (the “Property”), a

series of contiguous mineral claims containing an indicated resource of 319,280 ounces (oz) grading 10.13 grams

per tonne gold (g/t Au) and an inferred resource of 155,960 oz grading 8.36 g/t Au. The mineralization is open

along strike in both directions and at depth. Additional zones of anomalous gold have also been discovered that

may be related to the Sugar Zone trend.

In 1998 Harte Gold entered into a Joint Venture agreement with Corona Gold Corp to acquire a 51% interest in

the Property and has since conducted a number of exploration programs in the search for additional gold

resources as well as expanding the known Sugar Zone Deposit. Harte Gold earned its 100% in the Property in 2012.

From 2008 to 2015 Harte Gold conducted several geophysical surveys including helicopter electromagnetic (HEM)

and magnetometer (MAG), helicopter time domain electromagnetic (HTEM), ground induced polarization (IP),

ground resistivity, ground MAG and airborne Lidar.

In 2016 Harte Gold received a permit for an Advanced Exploration Bulk Sample of 70,000 tonnes within the Sugar

Zone Deposit. Extraction of the bulk sample is currently in progress.

Also in 2016 Harte Gold completed a $25 million financing with Cantor Fitzgerald Canada Corporation ($15 million)

and Appian Natural Resources Fund ($10 million) to facilitate the acceleration of exploration and development

work at the Sugar Zone Property.

This report represents a compilation of the geophysical surveys conducted since 2008 where original digital data

is still available. The primary reason for the report is to define exploration targets for further exploration.

In addition to the Sugar Zone Property Harte Gold has staked more claims to the north, south and east of the

existing claims. These new claims are also discussed with recommendations for rapid exploration.

7 | P a g e

2.0 Property Description

The Sugar Zone Property is located approximately 25 km northeast of White River, 60 km east of the Hemlo Gold

Camp and can be accessed via a series of logging roads that extend from Highway 17 to the Property (Figure 1).

The central portion of the claims is located at 48o 48’ north latitude and 85o 10’ west longitude.

The Property is located within the Sault Ste. Marie mining division and extends across several townships including

Odlum, Strickland, Gourlay, Tedder and Hambleton.

Figure 1 - Property Location for the Harte Gold Sugar Zone Property.

The mineral claims forming the Sugar Zone Property are shown in Figure 2 and are listed in Appendix A. The

approximate extent of the claims is 28 km north-south by 12 km east-west.

Sugar Zone Hemlo

8 | P a g e

Figure 2 - Harte Gold mineral claims for the Sugar Zone Property.

The daily temperature can range from a low of -35oC in the winter to a high of +30oC in the summer. Mean

temperatures range from -20oC with the coldest day on January 17th to +20oC with the warmest day on July 30th.

Snow begins to accumulate in early December and the lakes and rivers remain frozen until early April. The

probability of cloud and snow is highest during the months of December and January and lowest during the

months from late May to late September. Daylight reaches a minimum of 8 hours in December and a maximum

of 16 hours in late June. In late January, there are 9.5 hours of daylight which increases to 11 hours by late

February. Due to the temperature and precipitation the least practical months to fly aerial surveys are November

through January while the best months are May through September. For ground geophysics, the best months are

mid-February to early April (for snowmobile supported programs) and from June to October (for quad-runner

supported programs).

Topography in the area ranges from moderate to rugged with lake levels at 390 m ASL and hilltops up to 100 m

higher. Overburden thickness varies from 0-20 m. Vegetation is boreal forest with common tree types of jack pine,

fir, poplar and birch in the uplands and cedar, tamarack and spruce in the lowlands.

5,400,000 mN

660,000 mE 640,000 mE

HWY 631

9 | P a g e

3.0 Exploration History

Much of the following summary of previous exploration was extracted from the “2015 Summary of Geologic

Mapping on the Sugar Zone Property” written by Jordan Laarman and Robert Middleton for Harte Gold.

Initial exploration around Dayohessarah Lake dates to 1969 but was sporadic until the discovery of the Hemlo

Gold Camp in 1983, located approximately 60 km to the west. From 1983-1986 Pezamerica Resources Limited

conducted several exploration programs including airborne Magnetics (MAG) and Electromagnetics (EM) with

ground follow-up of twenty-four (24) priority targets. This work uncovered several pyrite/pyrrhotite rich zones

within felsic volcanics but no significant gold intersections.

In 1991, prospecting, trenching and a ground induced polarization (IP) survey resulted in the discovery of the Sugar

Zone. For the next nineteen (19) years most of the exploration work was to define the limits of the Sugar Zone

and define a Mineral Resource estimate.

In 2008 a helicopter frequency domain (HEM) and MAG survey (Dighem) was conducted by Fugro under contract

to Corona Gold Corporation. This survey resulted in several additional targets that were recommended for ground

follow-up occurring along strike from the Sugar Zone in both directions. Trenching and drilling commenced over

the newly discovered Wolf Zone located 1.5 km northwest and along the same trend as the Sugar Zone. It is noted

here that while Harte Gold received paper copies of the survey in 2010, it did not receive a digital copy of the

working database until December 2016.

In 2009 follow-up of the previous year’s Dighem survey was completed and consisted of prospecting, channel

sampling and geological mapping. During this time, high gold values (87 g/t Au) were returned from a series of

float rock (Peacock Boulders).

In 2010 a major IP survey consisting of 20.5 l-km was completed and additional drilling of the Wolf Zone continued.

In 2011 additional grid cutting was completed along the northern edge of Dayohessarah Lake and a smaller grid

was completed on the west side of the lake over an exposed gossan. The cut grids were surveyed with IP and a

follow up drilling program (3.4 km) in fifteen (15) drillholes did not intersect any significant gold values. Airborne

VTEM was also completed over part of the property and identified conductors within the mapped ultramafic units

suggesting possible nickel-copper (Ni-Cu) mineralization.

In 2012 the VTEM survey coverage was expanded to cover the entire Sugar Zone trend. Drilling continued to test

previous IP targets but with no significant results. Two holes drilled into the Wolf Zone did not return any

significant assays.

In 2013 the Ni-Cu targets discovered during the previous year’s VTEM survey were drilled and the conductors

were explained as barren iron sulphide.

In 2014 a high-resolution IP survey was carried out by Abitibi Geophysics under the supervision of Harte Gold

consultant Robert Middleton. The survey identified several sub-parallel IP trends defined by high chargeability

anomalies with associated moderate to high resistivity.

10 | P a g e

In 2015 Harte Gold conducted detailed geological mapping and sampling programs over portions of the property

including north of the Wolf Zone and along the volcanic-metasedimentary contact on the west side of

Dayohessarah Lake.

In 2016 Crone Geophysics conducted an 3D resistivity survey (Escan) over the main grid extending from the

northern limit of the Sugar Zone to the Wolf Zone. Several IP anomalies were identified for future follow up. During

the fall of 2016 one of the main chargeability trends identified by Escan and on trend with a previous gold

intersection in drillcore was followed up with a small drill program and led to the discovery of the Middle Zone.

3.1 Brief Discussion of Previous Geophysical Exploration

Initial interest in the Dayohessarah Lake area was based on prospecting and geological mapping. The first

geophysical surveys occurred during the mid 1980s and required ground follow up geophysics to better identify

targets for subsequent drilling. This method identified several sulphide occurrences consisting of pyrrhotite and

pyrite but little anomalous gold (only PZ-3 of 9 holes intersected gold - 0.69 g/t Au over 0.16 m). Of the nine (9)

holes drilled to test airborne EM anomalies from the 1980s survey, 4 of the 9 holes either missed their target or

have been assigned inaccurate collar coordinates.

In 2008 most of the Harte Gold claims were reflown with Dighem, a magnetic and electromagnetic system that is

designed to detect conductive sulphide to depths of 100 m. This system is similar with what would have been used

in the 1980s but with greater spatial accuracy thus allowing for direct drilling of selected targets. One aspect of

the Dighem survey interpretation not investigated was the use of the “magnetic fabric” to better correlate

geologic contacts. As will be discussed later and by way of example, the mapped granite can be shown to have a

uniform magnetic fabric that is broken only by later diabase dike intrusions and minor faulting whereas the host

volcanics show areas of multiple linear trends that are oriented sub-parallel to the known mineralized trend. It

should be possible to further define the trends within the MAG component of the Dighem survey to better identify

areas with prospective geology and not simply identify associated MAG highs with conductive trends as was done

in the past.

Ground IP surveys in combination with geological mapping, sampling and trenching led to the discovery of the

Sugar Zone in 1991. There is a strong correlation between sulphide and gold within the Sugar Zone as can be

observed in drillcore and samples taken from the underground ramp (Kusins, 2017). However, high levels of

sulphide are not necessarily indicative of high levels of gold. In 2014 a significant portion of the exploration grid

was resurveyed with high resolution IP (25 m “n” spacing, n=6). This work, by Abitibi Geophysics under the

direction of Robert Middleton, clearly defined several sub-parallel IP trends that occur along strike from the Sugar

Zone to the Wolf Zone.

The 2015 Escan survey attempted to repeat the Abitibi IP survey but with better depth penetration and improved

resistivity mapping. The Escan survey identified additional targets, some not yet followed up on. The consistency

of both the Abitibi IP and the Crone Escan surveys shows that sulphide-rich zones within the host volcanics can be

identified and traced along strike but do not necessarily contain anomalous gold. While IP anomalies do not

guarantee that gold is present, the lack of IP anomalies likely means no sulphide system is present and therefore

11 | P a g e

no gold. During the 2016 drill program the follow up of an Escan high chargeability trend that correlated with a

minor gold intersection in drillhole PZ-3 led to the discovery of the Middle Zone.

4.0 Detailed Geophysical Summary

The following is a detailed summary of the geophysical surveys conducted from 2008 to present. Logistical

information and technical background for each method is described in more detail in the Appendices as noted.

4.1 2008 Dighem Airborne Survey

A logistical summary of the 2008 Dighem survey performed by Fugro is provided in Appendix B. The survey covered

most of the original claims. The system acquired EM data from five (5) different frequencies and two (2) coil

configurations as well as from a total field optical magnetometer (MAG). The MAG sensor was located on the

same platform as the EM system, approximately 30 m above ground.

The coaxial EM coil configuration (CX) is more sensitive to sub-vertical conductors while the coplanar coils (CP)

are more sensitive to flat-lying conductors. Comparing the coaxial to coplanar profiles for the low- or mid-

frequency is an effective way to separate bedrock conductors of exploration interest from conductive overburden

(e.g. see Figure 3). Figure 4 shows the conductor picks obtained using the above method superimposed on the

total magnetic intensity (TMI) and the corresponding coaxial in-phase response at 1,000 Hz. A review of these

trends shows that the Sugar Zone mineralization is not conductive although there are conductive sub-parallel

trends nearby. These nearby trends are interpreted to consist of higher percent sulphide and represent the

features originally drilled by Corona.

Figure 3 - Dighem coplanar (upper) and coaxial (middle) EM responses with TMI (lower).

bedrock

overburden overburden

12 | P a g e

Figure 4 shows the entire Dighem survey (MAG on the left and EM on the right) from which several important

observations can be made:

1. The northern limit of the Sugar Zone appears to be controlled by a fault that is interpreted to strike

east-west near 5,407,610 mN;

2. The MAG image identifies several magnetic features that are sub-parallel to the chargeability

zones defined by the Abitibi IP survey suggesting that the MAG is detecting the pyrrhotite within

the sulphide-rich trends, some of which carry the gold mineralization. This could prove to be a very

efficient and cost effective method for locating non-conductive sulphide trends beyond the known

mineralization;

3. Mineralization within the Wolf Zone appears to end north of 5,409,120 mN and yet the MAG

suggests the mineralization is interrupted by an ultramafic plug having a diameter of 200 m. North

of this plug there does not appear to be any drilling and the Wolf Zone could continue;

4. The southern limit of the Sugar Zone occurs close to an east-west fault interpreted by the MAG and

located at 5,406,700 mN;

5. There is no direct correlation between conductivity and gold intersection which suggests the gold

mineralization is not conductive by electromagnetic geophysical methods;

6. The region mapped as granite along the eastern margin of the survey shows a MAG response that

is very uniform and probably not of exploration interest. This uniformity could prove to be an

effective way to map the granite;

7. The central portion of the claims is highly magnetic and yet is mapped mainly as a

metasedimentary unit with minor ultramafic intrusive plugs and dikes. Based on the MAG response

the ultramafic units represent a more substantial intrusion measuring 4 km along strike by 1 km

across strike that is poorly represented by surface mapping;

8. The western margin of the survey shows a uniform MAG response that is mapped as granite

reinforcing the idea that the MAG response can define the contact between mafic volcanics and

granite;

9. Along the eastern margin of the survey area south of 5,403,000 mN the area is mapped as granite

yet the MAG response is more consistent with mafic volcanics suggesting there is a problem with

the geological mapping in this area;

10. Along the western margin of the survey the geology is mapped as granite yet the magnetic fabric

is more consistent with mafic volcanic.

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Figure 4 - Magnetics (left) and EM (right) from the Dighem survey.

1

2

3

4

5

6

7

8

9

10

14 | P a g e

A close-up of the TMI is shown for the Sugar Zone Deposit (Figure 5). The north and south faults across the Sugar

Zone are more apparent as are the northwest trending linear features that correlate with IP chargeability targets

and the known gold mineralization. Based on the close-up view of the TMI and anomalous gold additional

observations can be made:

1. The structure that limits the northern edge of gold mineralization within the Sugar Zone appears to

offset the geology to the west, on the north side of the structure. This is where the Middle Zone was

recently discovered;

2. The linear magnetic features are evident as a series of interlaced northwest trending features

occasionally interrupted by what look to be ultramafic (UM) plugs;

3. The Wolf Zone mineralization terminates at an interpreted UM plug but a linear feature continues north

of the plug and has not been drill-tested;

4. Sugar Zone mineralization terminates to the south near a second east-west structure evident in the TMI.

The mineralization could be offset in a manner like the Middle Zone;

5. Not shown on this map.

6. The uniformity of the granite is evident;

7. The UM appears to be more substantial than geologic mapping has indicated.

Figure 5 - A close-up of the Dighem TMI with relevant features noted.

1 6

3

2

4

7

15 | P a g e

4.2 2012 VTEM Airborne Survey

A summary of the logistics report is provided in Appendix C for the VTEM flown by Geotech in 2011 and 2012. In

both surveys data was collected along east-west lines within a survey polygon that was smaller than the Fugro

survey but still covered most of the mineral claims. The EM flight height averaged 50 m while the magnetometer

height was 60 m.

VTEM is a time domain system. Profiles of the decaying EM field are measured after the ground has been energized

with a primary field having a base frequency of 30 Hz (far lowered than the Dighem 900 Hz). Because of the low

base frequency the VTEM system can detect very conductive targets to great depth.

Figure 6 shows a comparison between the VTEM- and the Dighem-magnetometer. The VTEM results are

comparatively smooth and do not identify the low amplitude linear features that are attributed to the sulphide-

bearing mafic volcanics (that are of primary exploration interest). Both the flight line direction and line spacing

are identical. Only the flight height is different with the VTEM magnetometer placed 30 m. The VTEM TMI is clearly

inferior to the Dighem TMI and does not identify the mineralized structures.

Figure 6 - Total magnetic intensity (TMI) images for VTEM (left) and Dighem (right).

Figure 7 shows the VTEM EM response and TMI for the complete survey polygon. Superimposed on the EM

response are the interpreted bedrock conductors. Compared to the Dighem EM, the VTEM bedrock conductors

are more continuous along strike and give a better indication of changing geologic strike based on the changing

locations of the formational conductors. The bedrock conductors are interpreted to be sulphide-rich horizons

within the mafic volcanics but are generally not gold-bearing.

Figure 8 shows the VTEM conductors superimposed on the Dighem TMI. There are no conductor trends directly

over the known gold mineralization. There are conductor trends close to the Sugar Zone which share a very similar

strike direction and could help identify more gold mineralization further to the north.

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Figure 7 - VTEM total magnetic intensity (left) and off-time EM with bedrock conductor picks.

17 | P a g e

Figure 8 - VTEM bedrock conductor picks on Dighem TMI.

4.3 2014 Abitibi Ground IP, Resistivity and Magnetometer Survey

Abitibi conducted a ground IP, resistivity and magnetometer survey over the entire exploration grid during a three

phase program starting in 2014. A summary of the Abitibi logistics report is provided in Appendix C.

The Abitibi survey was designed to provide high resolution (25 m) and moderate depth of penetration (100 m).

Calculated chargeability (a measure of disseminated sulphide) and bulk resistivity were provided as long sections

and in plan map format.

Figure 9 shows chargeability calculated for 40 m depth with anomalous gold from drillcore projected to surface

while figure 10 shows apparent resistivity (also at 40 m with anomalous gold projected to surface). The main

observations from the Abitibi survey are:

1. The known mineralization is consistent with high chargeability anomalies;

2. The Sugar Zone and Middle Zone are located within a broad zone of high resistivity while the Wolf Zone

is within a local zone of high resistivity;

3. There are several sub-parallel trends of high chargeability (assumed to be disseminated sulphide) with

most trends located west of the gold trend and ending at the contact with the ultramafics;

18 | P a g e

4. The average distance separating the IP trends is 100 m;

5. One major IP trend is coincident with a resistivity low and corresponds with the VTEM conductor trend

suggesting the trend contains both disseminated and net-textured sulphide;

6. The IP trends extend beyond the northwest edge of the cut grid.

Figure 9 - Abitibi IP chargeability with anomalous gold in drillhole.

Figure 11 shows the ground magnetometer data collected as part of the IP / resistivity survey. Data was collected

along the 100 m cut lines (same distance as the airborne surveys) and in continuous measurement mode (one

ready every two seconds). Despite the same collection resolution, the ground MAG is unable to reproduce the

quality of the airborne MAG, especially the Dighem MAG.

19 | P a g e

Figure 10 - Ground resistivity from the Abitibi survey.

20 | P a g e

Figure 11 - Ground magnetometer (TMI) from the Abitibi survey.

4.4 2016 Escan Ground Resistivity and IP Survey

Crone Geophysics conducted an Escan 3D resistivity and IP survey during May and June in 2016. The purpose of

the survey was to increase the depth of penetration achieved with the Abitibi IP survey and to improve the quality

of the resistivity measurement by acquiring data across lines as well as along lines (i.e. on a 2D grid).

The Escan survey geometry is lower resolution than the Abitibi IP survey (100 m station spacing versus 25 m) but

the quality of the resistivity is believed to be superior and an important aspect of this survey was to map the

resistive host rocks of the Sugar Zone toward the Wolf Zone.

21 | P a g e

Figure 12 shows the IP chargeability and resistivity while Figure 13 shows the resistivity and metal factor. All

images show anomalous gold projected to surface from drillcore intersections with drill traces. Metal factor is a

normalized IP response corrected for resistivity. High metal factor is consistent with abundant disseminated

sulphide.

Figure 12 - Escan IP (left) and resistivity (right) between Sugar Zone and Wolf Zone.

The Escan survey shows a high correlation between high resistivity and high chargeability which is consistent with

the Abitibi IP survey. There are also fewer Escan IP trends, interpreted to be a result of the wider station spacing

and therefore reduced lateral resolution.

The metal factor trend over the Sugar Zone is continuous to the northwest for almost 1 km, though the trend is

offset to the west. The metal factor trend over the Wolf Zone is less defined and has a short strike extent. There

is a more defined trend to the west of the Wolf Zone that is more consistent with the strike direction of the Sugar

Zone and this trend should be reviewed in more detail.

An aspect of the survey data noted by Greg Shore (developer of Escan) was the lack of dip information in either

the IP or resistivity data, which are acquired in increasing depth slices from 0 m to approximately 300 m. The

geology of the Sugar Zone is known to dip west at an angle of -65o but the Escan data shows no migration with

depth. One likely explanation is the relatively high resistivity of the host rocks and possible current channeling of

the transmitted current waveform concentrating the signal within the near surface. This would cause the Escan

anomalies to be located over the shallowest portions of the sulphide source. This is consistent with the response

over the Sugar Zone where the calculated metal factor at 100 m depth corresponds with the surface projection of

the known mineralization. Because of this observation any drill recommendations should take into account a -65o

dip with a resultant westward shift of the drillhole collar.

22 | P a g e

Figure 13 - Escan resistivity (left) and metal factor (right) from the Sugar Zone to Wolf Zone.

5.0 2015 Field Prospecting and Sampling

Results of the 2015 field prospecting and sampling program (Laarman and Middleton, 2015) are reproduced here

because some of the prospects were based on ground follow up of geophysical targets, the 2015 program is the

most recent prospecting and sampling program away from the known trend and some results were suggested for

additional work but were not followed up on in 2016.

Highlights from the 2015 program with further recommendations were:

1. The Gossan Zone located along the west side of Dayohessarah Lake returned Au values up to 0.57

g/t and was extended further north with recommendations to cut a grid and cover with IP;

2. Additional prospecting near Pezamerica drillhole PZ-5 revealed mineralized sericite schist outcrop

containing anomalous gold;

3. Mapping of a clear-cut on the Hambleton Grid revealed anomalous base metals (up to 0.5% Zn)

and coinciding with an IP trend with recommendations to review drillhole HG-12-16 for base

metals;

4. Chalcopyrite and anomalous gold was discovered in outcrop at the north end of the Hambleton

Grid as well as gold-bearing shear zones near the mafic volcanic – granite contact.

The Gossan Zone (from herein referred to as the Gossan Prospect and shown in Figure 14) is a north-northwest

trending feature that is coincident with a strong magnetic linear trend. The geology is mapped as felsic and mafic

volcanics often containing sulphide (commonly pyrite). The Gossan Prospect has been mapped and sampled over

a 1.1 km strike length with the best assay of 0.57 g/t Au from sample number E5568008 and located at 642,866

23 | P a g e

mE and 5,405,367 mN. This zone corresponds to a magnetic trend that changes strike direction and continues

northwest beyond the Harte Gold mineral claims trending into what is mapped granite.

Drillhole PZ-5 was drilled to test an airborne EM conductor from a survey conducted prior to 2008. Comparing the

drillhole location of PZ-5 with results from the 2008 Dighem survey suggests that the hole collar is either

incorrectly located or the hole did not intersect the intended target. PZ-5 has no significant gold intersections.

The mapping and sampling on the Hambleton grid is near the northern limit of the Abitibi IP survey. A visual review

of HG-12-16 for base metals is warranted if the drillcore is available. While the presence of base metals is positive

the lack of anomalous gold in all 16 drillholes and the presence of undrilled IP targets that correlate with gold

intersections in drillcore should be given higher priority.

Figure 14 - The Gossan Prospect and the PZ-5 area is shown on a magnetic image with mineral claim outlines.

Gossan Prospect

Sugar Zone

Middle Zone

Wolf Zone

DDH PZ-5

24 | P a g e

6.0 New Claim Prospects

Harte Gold has staked three new areas that are contiguous to the existing Sugar Zone mineral claims. These new

claims (shown in Figure 15) are referred to as the “North claims”, the “South claims” and the “East claims”.

Figure 15 - Harte mineral claims including new claims in bold magenta.

Figure 16 shows high resolution airborne geophysical data available in the public domain. As can be seen by the

coverage most of the area surrounding the Sugar Zone Property has no high-resolution geophysics coverage. The

eastern section of the East Claims is covered by a recent VTEM survey conducted for the Ministry of Northern

Development and Mines (MNDM, see OGS report 1079a/b, 2015) covering an area of 36 km2. The South Claims

and North Claims have no high resolution geophysical data available. The coverage of each claim grouping is

summarized in Table 1. Combined, the 3 areas total 22,160 Ha (220.2 km2).

Area Ha Km2 Easting (mE) Northing (mN)

North 3,584 35.84 650,200 5,422,100

South 9,216 92.16 642,100 5,385,800

East 9,216 92.16 660,000 5,395,000

Table 1 - The three newly staked areas total 22,160 Ha. Note the claim outlines are estimates only.

North Claims

East Claims

South Claims

Sugar Zone Claims

Other Claims

5,420,000 mN

5,400,000 mN

680,000 mE 620,000 mE

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Figure 16 - High resolution magnetic coverage near the Sugar Zone Property.

A close-up of the East Claims is shown in Figure 17 where the area is over 30% covered by a VTEM survey flown in

2014 for the MNDM. The survey was flown at a 200 m line spacing with flight lines oriented north-south. There

are 8 conductive trends identified from the survey, some of which are located on Harte Gold claims, some on

other staked claims and some on open ground. Table 2 lists the location of each conductor trend (CT) in UTM

coordinates NAD-83, UTM Zone 16N. The trends are defined in more detail below.

Conductor Trend Description Easting (mE) Northing (mN)

CT-01 2 line, VMS style, 400 m strike, 1,500 µs 671,200 5,405,978

CT-02 1 line, low conductance, mag assoc. 669,600 5,406,520

CT-03 1 line, weak amplitude, low conductance 671,800 5,404,835

CT-04 3 line, mag assoc. moderate conductance 672,600 5,404,925

CT-05 2.4 km strike, moderate conductance 662,000 5,399,081

CT-06 Eastern limit of CT-05 663,400 5,399,810

CT-07 3.2 km magnetic trend with conductors 668,600 5,398,545

CT-08 Eastern limit of CT-07 670,999 5,397,634

Table 2 - Summary of conductor trends on the East Claims.

5,420,000 mN

5,400,000 mN

680,000 mE 620,000 mE

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Figure 17 – East Claims over VTEM magnetics showing proposed claims to cover targets CT-07 and CT-08.

6.1 East Claims Trends CT-01 and CT-02

Conductor trends CT-01 and CT-02 are located outside of the new Harte Gold claims to the north and appear to

be on open ground, but very close to the Lizar Claims, registered to Lloyd Halverson, Doug Kakeeway and John

Ternowesky.

CT-01 is a two (2) line (400 m strike length) conductor striking east-west and located under several meters of

overburden. The trend does not have a magnetic association. Suggested sources are volcanogenic massive

sulphide or conductive sediments (Tau is 1,500 µs). The eastern line L1520 has a stronger response suggesting the

source could be plunging to the west or it could terminate near the western flight line L1510.

CT-02 is a one (1) line conductor located at the northern edge of a 1.7 km magnetic trend. The conductor shows

low conductance (Tau is 150 µs). CT-02 extends 1.6 km north of the northern East Claims boundary.

Proposed new claims

East Claims

CT-07

CT-08

CT-06

CT-05

CT-03

CT-02 CT-01

CT-04

27 | P a g e

6.2 East Claims Trends CT-03, CT-04, CT-05 and CT-06

Conductor trends CT-03 through CT-06 are located within the Harte Gold East Claims. The claims were staked prior

to the airborne survey results becoming known to Harte Gold.

CT-03 is a one (1) line response with low amplitude and low conductance. It shows weak magnetic association.

CT-04 is a three (3) line response with moderate amplitude and moderate conductance (Tau is 500 µs). The strike

direction is southeast with the conductor trend associated with a 1.8 km magnetic trend striking 160o. Both CT-03

and CT-04 are located near the eastern limit of the claims.

CT-05 and CT-06 represent what appears to be a 2.4 km strike length conductor with a weak magnetic association.

Conductance is moderate (Tau is 600 µs) and the conductor appears to be deep and likely buried by thick

overburden cover. The source of the conductor could be an alteration product from a dike-like intrusion or along

a fault.

CT-07 and CT-08 represent a 3.2 km magnetic trend that has conductive responses within. The strike direction is

110o (ESE) and the geology is proposed to be mafic volcanics with possible ultramafic intrusions (not unlike the

Sugar Zone). This area appears to be the most interesting of the targets and could be covered with eight (8) large

claims as shown previously in Figure 17 and summarized below in Table 3.

Polygon Corner 1 (mE, mN) Corner 1 (mE, mN) Corner 1 (mE, mN) Corner 1 (mE, mN)

1 664955, 5398570 664955, 5400170 666555, 5400170 666555, 5398570

2 666555, 5398570 666555, 5400170 668155, 5400170 668155, 5398570

3 668155, 5398570 668155, 5400170 669755, 5400170 669755, 5398570

4 669755, 5398570 669755, 5400170 671355, 5400170 671355, 5398570

5 666555, 5396970 666555, 5398570 668155, 5398570 668155, 5396970

6 668155, 5396970 668155, 5398570 669755, 5398570 669755, 5396970

7 669755, 5396970 669755, 5398570 671355, 5398570 671355, 5396970

8 671355, 5396970 671355, 5398570 672955, 5398570 672955, 5396970

Table 3 - Corners of polygons for proposed claims covering CT-07 and CT-08.

7.0 Discussion and Exploration Strategy

The geology surrounding the Sugar Zone Deposit is generally covered by overburden thus increasing the reliance

on geophysical methods. Prior to 2000 airborne surveys did not have the positional accuracy to allow geophysical

products to be compared in a compilation to within 50 m or better. With the removal of GPS selective availability

in May of 2000, GPS accuracy for airborne systems is better than 3 m and is no longer the main issue in positioning

geophysical data.

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The 2008 Dighem survey produced high quality magnetic data that appears to map the pyrrhotite located within

the mafic volcanics. This was previously thought to be possible only by ground IP. Estimated costs by line kilometer

for the main geophysical methods are summarized in Table 4. Having a comparatively inexpensive airborne

method to map sulphide concentration in mafic volcanics has important implications for the recently staked

mineral claims.

Method All-in Cost / l-km Cost for 100 km Production Rate Time for 100 km

Dighem $60.00 $6,000 100 km / hr 1.0 hr

VTEM $120.00 $12,000 70 km / hr 1.4 hr

Traditional IP / Res $2,300 $230,000 3 km / day 33 days

Escan IP / Res $4,600 $460,000 2 km / day 50 days

Table 4 - Cost and production estimates for the geophysical methods used by Harte Gold.

Initially, Harte Gold had access only to the VTEM airborne magnetic data. The Dighem data was acquired directly

from Fugro (now CGG) in December 2016. A comparison between the 2 magnetic surveys shows conclusively that

the VTEM magnetic data is not suitable for gold exploration where direct mapping of magnetic trends containing

pyrrhotite is sought and where there is a relationship between sulphide and gold.

Both the Dighem and VTEM surveys show the mineralization associated with the gold mineralization is not

conductive by electromagnetic methods at least in the range from 30 – 52,000 Hz. Both methods do identify

nearby conductive trends that are sub-parallel with the known mineralization and that could serve as indicators

of strike direction of the mineralized trends. It is desirable, therefore, to have some form of EM method in addition

to high resolution magnetics when attempting to map the mineralized structures using airborne methods.

Comparing the VTEM conductor picks against the Dighem picks, the VTEM system better energizes the sub-vertical

sulphide systems and produces a more continuous map of these conductors along strike. However, the VTEM

system magnetometer is necessarily located an additional 10 m higher (60 m above surface) than the VTEM

transmitter coil to prevent the magnetometer from saturating in the strong VTEM primary magnetic field. This

puts the airborne methods into a problem of compromise. The Dighem system yields better magnetic data while

the VTEM system yields better EM data. It is not yet possible to attain the Dighem magnetometer resolution using

a helicopter time domain EM system. In an ideal situation, these measurements would be acquired separately.

The Abitibi ground IP survey produced a series of sub-parallel high chargeability anomalies within a moderately

high resistivity host rock. This is typical of gold systems that show an association between sulphide and gold and

where the host rock is altered but also highly silicified. At the Sugar Zone pyrrhotite appears to be a common

sulphide component and it is magnetic. The presence of a chargeability anomaly indicates the presence of sulphide

but does not guarantee gold will be present. In fact, one should expect most of the sulphide zones to be barren

(otherwise gold would be a lot cheaper). The 25-m station spacing from the Abitibi survey is close enough for

discretely mapping the sulphide zones and the 100-m spaced lines are suitable for mapping the change in strike

direction as they pinch and swell along trend. There are obvious untested chargeability trends within the Sugar

Zone to Wolf Zone area that require further review. The caveats of the Abitibi survey are the high cost per line-

km and the relatively shallow depth penetration (~100 m).

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The Escan survey was problematic during field acquisition as the crew was not prepared for the topography typical

of the local terrain. But the results of the survey, particularly the resistivity measurements, were impressive.

Indeed, one major anomaly that was detailed in the metal factor maps, suggesting the Sugar Zone mineralization

extended to the north and coinciding with a minor intersection of DDH-PZ-3, resulted in the discovery of the

Middle Zone. Escan costs approximately twice as much as the Abitibi IP survey and produces useful information

to a depth of 300 m. In hindsight, it is doubtful whether the additional depth is of much benefit. The real benefit

is the better continuity of the resistive trends along strike albeit at a lower resolution than the Abitibi IP survey

(100 m versus 25 m stations). Typical Escan costs are $250,000 for a 50 l-km grid plus the cost of grid cutting.

These costs can be justified within the main mineral claims where previous exploration has identified gold

showings but would be less certain on the new claims where no previous exploration data is available.

The Escan mapped variations in resistivity from 100 ohm-m to almost 100,000 ohm-m. The Dighem survey includes

a high frequency coplanar coil (CP) configuration operating at 56,000 Hz that can map resistivity variations up to

10,000 ohm-m. A comparison of the CP-56000 quadrature amplitude and Escan resistivity (Figure 18) shows good

agreement and shows the host volcanics to be highly resistive. But the Dighem survey is also highly sensitive to

conductive overburden such as the shallow lake located between the Wolf Zone and the Sugar Zone.

While the host volcanics shows high relative resistivity, resistivity mapping on its own does not appear diagnostic

of the gold mineralization or of the trend of the mineralization. The correlation is general and less convincing than

the chargeability response. It is only when the chargeability is normalized by the resistivity in the form of the metal

factor that the gold trend becomes apparent. Therefore, resistivity mapping on its own, such as from the Dighem

EM system, VTEM system or a VLF system, is not diagnostic of either the host rocks or the gold mineralization.

Figure 18 - Escan resistivity (left) and Dighem quadrature CP-56000 response (right).

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Within the main grid the geophysical data highlight a corridor that extends from the Sugar Zone to the Wolf Zone

and beyond that is not yet sufficiently drill tested. This is shown in Figure 18 below and is termed the “Main

Corridor”.

Figure 19 - Dighem magnetics with superimposed gold showings projected to surface in the Main Corridor.

The Main Corridor is defined by anomalous linear magnetic features trending sub-parallel to the known

mineralization, IP trends of high chargeability and moderate to high resistivity, west-dipping bedrock conductors

due to thin sulphide-rich horizons and anomalous gold in drillcore. There are at least five (5) areas that are either

not drill tested or are under-drilled and yet remain on-trend with the known mineralization or near anomalous

gold intersections. These areas are summarized below in Table 5.

Main Corridor

A-01

A-02

A-03

A-04

A-05

Secondary Corridor

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Area of Interest Description

A-01 700 m strike length located north of Middle Zone and having magnetic and IP responses consistent with sulphide mineralization.

A-02 On-trend with the known mineralization, corresponding with magnetic and IP trends and coinciding with 2 gold intersections in drillcore.

A-03 Northwest continuation of the Wolf Zone which is interrupted by an ultramafic plug.

A-04 Under-drilled area with magnetic and IP response suggesting sulphide mineralization to the east of the main drilling trend.

A-05 No drilling but with magnetic and IP response to the west of the main drilling trend (by about 100 m).

Table 5 - Exploration target summaries within the Main Corridor.

Also shown in Figure 18 is the Secondary Corridor that is under-explored and that shows the same linear magnetic

trends that are apparent in the Main Corridor around the Sugar Zone. Some quartz veining and sulphide in float

and outcrop have been found previously with the Secondary Corridor but the area has seen little drilling. The

Sugar Zone is located adjacent to a major ultramafic intrusion and the Secondary Corridor is located on the

western side of this intrusion.

The airborne magnetic data has identified the major lithologies such as the regional granites, the mafic volcanic

rocks that are host to the gold intersections and the ultramafic intrusions. But the magnetic coverage is insufficient

to properly map the contact between the volcanics and the granite, especially in two areas that may have

exploration significance.

Area A-06 extends to the northwest of the main claims and covers an area that appears to be an ultramafic

intrusion having a strike length of up to 3 km. The main claim magnetic data near the western margin does not

appear to be granite as mapped. There could be an extension of ultramafic rocks toward the interpreted ultramafic

intrusion in a geological similarity to the Sugar Zone.

Area A-07 is located between the high resolution VTEM survey covering a portion of the East Claims and the main

claims where the edge of the magnetic map does not suggest a uniform granite contact.

32 | P a g e

In summary:

1. High resolution magnetics appears to be the best low-cost mapping tool for direct detection of pyrrhotite-

rich trends in the volcanic host rocks that could carry gold;

2. HTEM conductor mapping is the best EM method for identifying adjacent sulphide-rich trends that can

help identify changes in the strike direction of the gold-bearing trends;

3. HTEM mapping will not identify the host rocks or the gold mineralization directly;

4. HTEM is preferred over HEM (Dighem) because it is less sensitive to conductive overburden and it better

energizes the sub-vertical sulphide trends that are close to and sub-parallel to the known mineralized

trend;

5. HTEM costs twice as much as HEM and this cost should be reduced;

6. Ground IP and resistivity are effective tools for mapping sulphide zones directly but are expensive relative

to the airborne methods – by a factor of 10 and higher;

7. Resistivity methods will not uniquely identify the host rocks or gold-bearing trends;

8. Ground methods should be used judiciously where other exploration data shows a high chance of gold

occurring within the cut-grid (such as ground sampling containing gold, identifying favorable geology,

positive geochemistry, or prospect drilling);

A-06

A-07

33 | P a g e

9. The Escan metal factor map led in part to the discovery of the Middle Zone but the Abitibi data could have

been used more effectively, especially as part of a combined geological and geophysical compilation to

identify new trends or changes in existing ones. The Abitibi IP survey is 50% lower cost compared to Escan;

10. Future geophysical survey data should immediately form part of the ongoing digital compilation prior to

being used for exploration decisions such as identifying new areas for sampling or drilling locations.

8.0 Recommendations

This geophysical compilation has identified targets for immediate follow up, targets requiring additional work,

areas of interest, new areas for staking and preferred methods for the exploration of gold mineralization like that

of the Sugar Zone.

On targets requiring immediate follow up:

1. The area between WZ-16-41 and WZ-16-44 that coincides with an Abitibi IP trend that is open to the

southeast requires more drilling (at least 2 drillholes). Any drillhole collars should be discussed with the

geology team;

2. The area northwest of the Middle Zone between drillholes WZ-16-47 and DZ-14-19 (and beyond) should

be targeted with additional drilling. Immediately along trend the surface is covered by a shallow lake and

has no drilling. Further to the northwest only a single drillhole has tested the IP trend (DZ-14-19) and the

IP trend continues for another 400 m northwest;

3. A drillhole should be collared northwest of the Wolf Zone to target an IP response that is on-trend with

the Wolf Zone mineralization targeting vertically below 644,680 mE and 5,409,450 mN, northwest of an

interpreted ultramafic plug to test for a northwest continuation of this zone;

4. A drillhole should be collared to test a linear magnetic feature that is coincident with an IP chargeability

high but that has no previous drilling. The location of the anomaly is 646,880 mE and 5,406,540 mN.

On targets requiring additional work:

5. The area centered at 644,400 mE and 5,404,200 mN is defined by several northwest oriented linear

magnetic trends that could represent pyrrhotite-rich zones like those within the Sugar Zone. This area is

roughly equidistant from and on the western side of the ultramafic intrusions and has seen little

exploration. Felsic volcanics were mapped during the 2015 field mapping program;

6. In the northern part of the mineral claims centered at 641,570 mE and 5,411,850 mN the magnetic trends

suggest additional pyrrhotite-rich zones could cross-cut the volcanics near the contact with the ultramafic

intrusions although the quality of the Dighem data may not be sufficient to highlight these trends directly

(i.e. they are inferred);

7. To the west of the above noted trends the magnetic data does not appear to map the volcanic-granite

contact although this contact is present on the geology map. Further to the west is located the area of

interest A-06 that is interpreted to contain a substantial ultramafic intrusion that does not appear to have

any exploration history. This area should be covered by high resolution triaxial-magnetics;

34 | P a g e

8. In a manner similar to the above, the eastern margin of the Harte Gold mineral claims is also defined by a

granite contact but this contact is not seen in the magnetic data south of 5,402,800 mN. This area (A-07)

should be covered with high resolution triaxial-magnetics, joining data from the Harte Gold main block

with the VTEM survey data collected in 2014 to the east. This will help define the location of the folded

mafic volcanics;

9. Areas recommended for new airborne survey coverage are shown in detail in Appendix G;

On new areas for staking:

10. Eight (8) 1.6 km x 1.6 km claim outlines as listed in Table 3 are recommended for staking to capture the

east-west trending magnetic feature with VTEM conductor anomalies that are interpreted to form part of

the mafic volcanics.

On geophysical methods for exploration:

11. High resolution triaxial magnetometer surveys are recommended as the most appropriate exploration

tool for identifying pyrrhotite-rich trends that could contain gold in a setting like the Sugar Zone;

12. HTEM surveys are recommended in the newly staked areas as an important tool to identify conductive

sulphide trends that can be used to trace the strike direction of the non-conductive but moderately

magnetic gold-bearing horizons. HTEM can detect base metal deposits that are also of exploration

interest;

13. Spectrometer surveys could possibly help identify areas of potassium alteration (diagnostic in some gold

districts) and can be acquired at a fractional increase in cost;

14. Ground methods should be used judiciously given their high cost per line kilometer, the length of time it

takes to complete these surveys and the requirement for cut lines;

15. Shallow IP / resistivity such as the survey performed by Abitibi Geophysics is recommended for areas

showing promise for gold trends. Such surveys should be integrated with the digital compilation prior to

any exploration decisions being made;

16. While the Escan survey proved to be an effective exploration tool, its greater depth penetration and

improved resistivity mapping does not necessarily justify the increase in cost within this project area

where the overburden is not strongly conductive nor sufficiently thick to limit the capability of the shallow

IP / resistivity method.

Respectfully submitted,

----------------------------------------------------

Stephen Balch, P.Geo. (#2250)

35 | P a g e

9.0 References

2008 Dighem Survey for Corona Gold Corporation, Sugar Zone Property, Report #08012”. Prepared for Corona Gold Corporation by Fugro Airborne Surveys Corp of Mississauga, Ontario, submitted April 21, 2008.

2012 Report on a helicopter-borne versatile time domain electromagnetic (VTEM-PLUS) and horizontal magnetic gradiometer geophysical survey. Prepared for Harte Gold by Geotech Limited, submitted May, 2012.

2014 Mag-GPS and Resistivity Induced Polarization, pole-dipole Configuration Surveys, Sugar Zone Extension, Phases I, II & III, Hambleton and Odlum Townships, White River, Ontario, Canada – Logistics Report, written by Abitibi Geophysics, submitted December 2014.

2015 Geophysical Survey and Logistics Report, written by Greg Shore, September 8th 2016.

2015 Report on the July 2015 Geological Mapping and Prospecting on the Sugar Zone property, Dayohessarah Lake area, White River, Ontario Prepared for Harte Gold Corp. Written by Jordan Laarman and Robert Middleton, submitted August 19, 2015.

36 | P a g e

10.0 Statement of Qualifications

I, Stephen James Balch, do hereby certify the following statements to be true:

I reside at 11500 Fifth Line, Rockwood, Ontario, N0B 2K0.

I graduated from the University of Western Ontario with a BSc in Honors Geophysics in 1985.

I have practised as a geophysicist continuously since 1985.

I am a Professional Geoscientist in good standing in the Province of Ontario (#2250).

I worked for Morris Magnetics from 1985 to 1989 as a field geophysicist.

I worked for IFG Corporation from 1989 to 1993 developing geophysical instrumentation.

I worked for Crone Geophysics from 1993 to 1995 as a staff geophysicist.

I worked for Inco Limited from 1995 to 2001 as an Area Geophysicist in the Sudbury Basin and as a Senior

Geophysicist at Voisey’s Bay.

I have been self employed as the President of Balch Exploration Consulting Inc since 2001.

I served as President of Aeroquest Limited from 2002 to 2004 and President of Aeroquest International

Limited from 2004 to 2006, helping the company go public trading as AQL on the Toronto Venture

Exchange.

I have worked on exploration programs in several countries including Russia, China, South Africa, Finland,

Mexico, Japan, Ethiopia, Turkey, Guinea, Canada and Australia.

I have explored for several commodities including nickel-copper-PGE, gold, diamonds, VMS, graphite, iron

ore, zinc, copper, gravel deposits and fresh ground water.

I have consulted to several junior and major mining companies including Inco Limited, Falconbridge

Limited, Anglo American, FNX Mining Company, Wallbridge Mining, Mustang Minerals and Harte Gold.

I have been active with several public companies including Aeroquest International Limited (co-founder

and President), Hudson River Minerals (co-founder, President and CEO), Tanqueray Resources (President

and CEO), James Bay Resources (Director), Tawsho Mining (President and CEO) and Rockefeller Hughes

Corporation (Director).

I am the sole author of this report and take responsibility for its contents.

I have no financial interest in Harte Gold Corp. and consider myself an independent consultant.

Signed Stephen James Balch

Dated

37 | P a g e

Appendix A – List of Harte Gold Mineral Claims

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Appendix B – 2008 Airborne Dighem Survey by Fugro

Fugro Airborne Surveys completed a helicopter-borne magnetic and electromagnetic survey (known as Dighem)

for Corona Gold Corporation over the Sugar Zone claims in 2008. The survey, flown during the period February

19th – 24th, totaled 1,917 km. The survey was flown over 2 separate blocks and different flight directions, the

detailed information of which is shown in Table One. The flight lines for both blocks and tie lines are shown in

Figure 20.

Block Line Direction Flight Lines (100 m)

Tie Lines (1,000 m)

Line totals (km)

Airspeed (km/hr)

Flight height (m)

North 303o 243 24 267 127 36

South 069o 1,502 128 1,650 127 36

Totals - 1,745 172 1,917 127 36 Table 6 - Detailed specifications for Fugro Dighem survey.

Figure 20 - Flight lines in black over mineral claims in red for the Harte Gold Sugar Zone Property.

39 | P a g e

The Dighem system is a frequency domain electromagnetic and magnetic survey platform towed by a helicopter.

Dighem provides two coil orientations (coaxial and coplanar) as well as five (5) total frequencies measured in the

form of in-phase and quadrature profiles. The basics of this system are summarized below:

1. Coaxial coils better couple with sub-vertical conductors and help differentiate bedrock conductors from

conductive overburden; 2. Coplanar coils better couple with sub-horizontal conductors and will produce a stronger response over

conductive overburden compared to coaxial coils; 3. Quadrature and in-phase profiles respond differently depending on the conductance of the source.

Quadrature profiles respond better to low conductance while in-phase profiles respond better to high

conductance; 4. In-phase profiles are affected by magnetic material which produces a negative response; 5. Higher frequencies are more sensitive to weaker conductors; 6. Lower frequencies have greater depth penetration; 7. Maximum depth penetration is estimated to be no deeper than 100 m; 8. When a sub-vertical conductor is present and there is no overburden response the coaxial coils will

produce a single peak and the coplanar coils will produce a double peak (known as a rabbit ears response).

If the conductor is dipping the higher amplitude peak will indicate the direction of dip.

For exploration of gold-related conductors the primary target is conductive sulphide, usually consisting primarily

of pyrrhotite and/or pyrite but in low concentrations and/or within thin zones ranging from 0.1 to 10 m. Such

zones appear as thin sub-vertical conductors when located in the steeply dipping geology like the Sugar Zone

Property. A typical exploration target is shown in Figure 21. This conductor was drilled by Corona Gold Corporation

in DDH-PZ-3 and returned a narrow zone of 0.69 g/t Au within a larger sulphide zone containing pyrrhotite and

pyrite. The estimated resistivity for this conductor from the Dighem survey is 50 ohm-m (or 20 mS), consistent

with a moderately conductive source.

Using the criteria listed above both survey blocks were interpreted for thin, sub-vertical conductors with the

resulting conductor picks being saved in the text file HEM-CT.csv and totaling 79 picks.

More information is available in the Fugro report “Dighem Survey for Corona Gold Corporation, Sugar Zone

Property, Report #08012”.

40 | P a g e

Figure 21 - Dighem profiles showing a bedrock conductor dipping left (west) and conductive overburden.

MAG

EM

Bedrock Overburden Overburden

Cpi56k Cpi7.2k

Cxi1k

41 | P a g e

Appendix C – 2012 Airborne VTEM Survey by Geotech

Geotech Limited completed a helicopter-borne time domain electromagnetic survey (known as VTEM) over the

Sugar Zone Property in two separate phases – one in 2011 and one in 2012. The data was integrated into a single

database and summarized in “Report on a helicopter-borne versatile time domain electromagnetic (VTEM-PLUS)

and horizontal magnetic gradiometer geophysical survey” submitted May, 2012. The specifics of the two surveys

are detailed in Table 2. Note that the location of the VTEM magnetometer is 10 m above the transmitter coil

placing this magnetometer approximately 60 m above ground (compared to 30 m for the Dighem system). The

VTEM flight line coverage is shown in Figure 23.

Survey Line Direction Flight Lines (100 m)

Tie Lines (1,000 m)

Line totals (km)

Airspeed (km/hr)

Flight height EM/MAG (m)

11084 090o 279 33 302 107 49 / 59

12284 090o 1,121 108 1,153 107 49 / 59

Totals - 1,455 141 1,542 107 49 / 59 Table 7 --Detailed specifications for Geotech VTEM-PLUS survey.

VTEM is a time domain system and measurements are made during the transmitter on-time as well as during the

transmitter off-time. Profiles of the vertical-oriented or “z”-axis receiver coil during the off-time detect both

bedrock conductors as well as conductive overburden. Given the low base frequency (relative to the Dighem

system) of 30 Hz the VTEM profiles are only weakly affected by the Sugar Zone overburden and mainly in the early

off-time channels. Most of the discrete conductors (having a short spatial response across strike) are interpreted

to be bedrock conductors.

Figure 22 shows the secondary field “z”-axis receiver coil profiles (SFZ) for flight line L111531:5. The upper profiles

represent the SFZ response while the lower profile represents the TMI. This line was chosen because it is in the

same area as the Dighem profiles shown above in Figure 21. The SFZ profiles contain two bedrock responses, one

at the left side of the figure consisting of a double peak with the higher amplitude peak located to the right (east)

and one at the right side consisting of a double peak with the higher amplitude peak located left (west) and

coinciding with DDH-PZ-3. Both conductors are interpreted to be dipping sulphide-rich mafic volcanics. The dip of

the bedrock conductors is consistent with the conductors located on the east side of Dayohessarah Lake dipping

west and those on the west side dipping east. The measured time constant of the PZ-3 VTEM conductor is 500 µs,

consistent with a moderately conductive source.

The higher flight height of the VTEM magnetometer is evident in the profile in Figure 22. It is also possible that

filtering of the magnetometer is required to remove the effect of the transmitter coil. This is not required for the

Dighem system because the transmitter coils transmit at a single frequency rather than a high amplitude spread

spectrum with VTEM.

42 | P a g e

Figure 22 - VTEM off-time profiles (upper) and TMI profile (lower).

Bedrock Bedrock Overburden

43 | P a g e

Figure 23 – VTEM flight line in black and Harte Gold mineral claims in red over the Sugar Zone Property.

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Appendix D – 2014 Ground IP, Resistivity and Magnetic survey by Abitibi

Geophysics

During the fall of 2014, Abitibi Geophysics conducted a ground induced polarization (IP), resistivity and

magnetometer (MAG) survey over the Sugar Zone Property in 3 phases. The purpose of the survey was to identify

disseminated sulphide based on measured chargeability and resistivity. A secondary purpose was to map magnetic

features with greater resolution than the airborne MAG surveys. Table 3 summarizes the important parameters

of the 3 phases. All data was converted to the NAD-83 Datum and UTM Zone 16N projection.

The survey configuration was of the dipole-dipole type (see Figure 24) with n-spacing equal to 25 m and n=6

electrode spacing (maximum electrode separation of 150 m). Such a configuration produces a maximum depth

penetration approaching 100 m. The complete logistics report is described in “Mag-GPS and Resistivity Induced

Polarization, pole-dipole Configuration Surveys, Sugar Zone Extension, Phases I, II & III, Hambleton and Odlum

Townships, White River, Ontario, Canada – Logistics Report”.

Phase Coverage (km)

System Line Spacing (m)

Station Spacing (m)

Max Depth (m)

Cost (per km)

1 49.5 IP/RES/MAG 100 25 106 $2,000

2 56.6 IP/RES/MAG 100 25 106 $2,000

3 65.8 IP/RES/MAG 100 25 106 $2,000 Table 8 - Specific details of the Abitibi Geophysics IP / resistivity and MAG survey.

Figure 24 - Abitibi IP dipole - dipole configuration for the Harte Gold Sugar Zone.

45 | P a g e

The resistivity and IP data can be displayed in many different forms. In this report the 8.3 colour grid is used to

show the chargeability trends. This grid is based on the chargeability at 40 m depth in mV/V and calculated from

Abitibi’s Image2DTM software. This plan map product shows the location of the linear trends that are high in

disseminated sulphide.

Figure 25 shows the coverage of the IP and resistivity survey.

46 | P a g e

Figure 25 - IP and resistivity coverage over the Harte Gold Sugar Zone

The magnetometer data was acquired using a GEM Systems GSM-19 walking magnetometer with a two (2) second

sample rate. The magnetometer has a GPS antenna for positional data with an accuracy of a few meters. The total

magnetic field, diurnal corrected for natural variations in the Earth’s magnetic field, is shown in Figure 26. The

data does produce anomalous trends with the same continuity as the airborne magnetic sensors because the

ground sensor is located too close to the ground and is strongly affected by very shallow features.

Wolf Zone

Sugar Zone

47 | P a g e

Figure 26 – Ground-based total magnetic field colour image from the Abitibi survey.

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Appendix E – 2016 Ground Escan Resistivity, IP Survey by Crone Geophysics

During the late spring of 2016 Crone Geophysics conducted a ground Escan 3D IP and resistivity survey over the

Sugar Zone Property north to include the Wolf Zone. Details of the survey are summarized in Table 9.

The purpose of the survey was to collect improved resistivity data across the Sugar Zone to Wolf Zone

mineralization and attempt to map a connection between the two zones.

Phase Coverage (km)

System Line Spacing (m)

Station Spacing (m)

Max Depth (m)

Cost (per km)

1 32.2 IP/RES 100 100 300 $4,000 Table 9 - Detailed summary of Crone Geophysics Escan survey.

Coverage across the survey area is shown in Figure 27 along with the cut grid that was used to acquire the Abitibi

IP data. The Abitibi survey was approximately 500% larger than the Escan survey and was acquired at half the cost

per line-km.

A more complete summary of the Escan survey can be found in “Geophysical Survey and Logistics Report” written

by Greg Shore (September 8th 2016).

Figure 27 - Escan survey area also showing cut lines and gold intersections.

49 | P a g e

Appendix F – Airborne Lidar Survey

In 2012 Airborne Imaging conducted an airborne Lidar survey over the central portion of the Sugar Zone claims.

The coverage is shown in Figure 28. The flight height was 1,400 m. Accuracy was 25 cm horizontal and 15 cm

vertical. Deliverables included 1m grids in ASCII and Arcinfo format, Geotiffs, point cloud and 50 cm interval

contours (dxf and SHP).

Figure 28 - Lidar coverage over the Sugar Zone Property.

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Appendix G – Areas Recommended for Airborne Surveying

In the northern claims area, it is recommended to fly an expanded block with magnetic gradiometer and two

partial blocks with AirTEM as shown in Figure 29 and summarized in Table x.

Figure 29 - Recommended surveys for the North Claims.

MAG-GRAD 1,198 l-km

$105,490

AirTEM 1,157 l-km

$75,205

51 | P a g e

Scenario Grid Method L-km Price* Sub-total Total Maximum Maximum Grid Mag-Grad 1,918 $55 $105,490 East Area AirTEM 622 $65 $40,430 West Area AirTEM 535 $65 $34,775 $180,695

Table 10 - Summary of proposed airborne surveys for North Claims.

It is recommended to fly the South Claims with both magnetic gradiometer and AirTEM. Coverage is shown in

Figure 30 and summarized in Table 11.

Figure 30 - Summary of proposed airborne surveys for South Claims.

Scenario Grid Method L-km Price* Sub-total Total Complete South Claims Mag-Grad 1,040 $55 $57,200 Complete South Claims AirTEM 1,040 $65 $67,600 $124,800

Table 11 - Recommended airborne surveys for South Claims.

Mag-Grad 1,040 l-km

AirTEM 1,040 l-km

$124,800

52 | P a g e

The area surrounding the East Claims has very little airborne coverage. Thus, a large magnetic survey is

recommended to connect the South Claims, East Claims, Main Block and the proposed new claims covering EM

anomalies A-07 and A-08. AirTEM is recommended for conductor trends A-05, A-06, A-07 and A-08. These areas

are shown in Figure 31 and summarized in Table 12.

Figure 31 - Proposed airborne coverage Mag-Grad (upper) and AirTEM (lower) for the East Claims.

Mag-Grad 2,734 l-km

$150,370

AirTEM 323 l-km

$20,995

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Scenario Grid Method L-km Price* Sub-total Total Expanded East All Mag-Grad 2,734 $55 $150,370 A05-A06 Block 1 AirTEM 99 $65 $6,435 A07-A08 Block 2 AirTEM 224 $65 $14,560 $171,365

Table 12 - Summary of proposed airborne surveys for East Claims.

Appendix C – Balch Exploration Consulting Inc. Report on a Helicopter-Bourne Triaxial Magnetometer and Spectrometer Survey at White River, Ontario

- 1 -

HELICOPTER TRIAXIAL MAGNETOMETER & SPECTROMETER SURVEY

JOB 2017-00117 | HARTE GOLD | WHITE RIVER, ONTARIO

REPORT ON A HELICOPTER-BORNE TRIAXIAL MAGNETOMETER AND SPECTROMETER SURVEY

AT WHITE RIVER, ONTARIO

Project Name:

White River, Ontario

Project Number: 2017-00117

Client:

Contractor:

Date:

November 13th, 2017

https://www.bing.com/images/search?view=detailV2&ccid=n/1cOmCR&id=F254167E0941BA7C1836158245B3EBB68FA9BF80&thid=OIP.n_1cOmCRzH3cUzJkE7Y0CQEsD6&mediaurl=https://upload.wikimedia.org/wikipedia/commons/thumb/f/f6/Earth's_magnetic_field,_schematic.svg/600px-Earth's_magnetic_field,_schematic.svg.png&exph=500&expw=600&q=image+of+earth's+magnetic+field&simid=608031834707068272&selectedIndex=11&qpvt=image+of+earth's+magnetic+field

http://www.hartegold.com/

- 2 -



Table of Contents

TABLE OF FIGURES............................................................................................................................................................... 3

1.0 INTRODUCTION ............................................................................................................................................................ 4

1.1 COMPANIES ....................................................................................................................................................................... 4 1.2 EXTENT OF SURVEY .......................................................................................................................................................... 4 1.3 DURATION OF SURVEY ...................................................................................................................................................... 4 1.4 DATUM & PROJECTION ..................................................................................................................................................... 4 1.5 SURVEY SYSTEM ............................................................................................................................................................... 4 1.6 THIS REPORT ..................................................................................................................................................................... 4 1.7 REPORT APPENDICES ........................................................................................................................................................ 5

2.0 PROPERTY DESCRIPTION ......................................................................................................................................... 5

2.1 LOCATION .......................................................................................................................................................................... 5 2.2 ACCESS .............................................................................................................................................................................. 5 2.3 BASE .................................................................................................................................................................................. 5 2.4 TOPOGRAPHY ..................................................................................................................................................................... 5 2.5 GEOLOGY ........................................................................................................................................................................... 6 2.6 INFRASTRUCTURE .............................................................................................................................................................. 6

3.0 SURVEY PROCEDURES & PERSONNEL ............................................................................................................... 15

3.1 LINE SPACING .................................................................................................................................................................. 15 3.2 BIRD HEIGHT .................................................................................................................................................................... 15 3.3 SPEED .............................................................................................................................................................................. 15 3.4 NAVIGATION .................................................................................................................................................................... 15 3.5 ALTIMETER ...................................................................................................................................................................... 16 3.6 BASE-STATION MAGNETOMETER ..................................................................................................................................... 16 3.7 PERSONNEL ...................................................................................................................................................................... 17

4.0 EQUIPMENT ................................................................................................................................................................. 18

4.1 HELICOPTER ..................................................................................................................................................................... 18 4.2 AIRBORNE SYSTEM .......................................................................................................................................................... 18

AIRBORNE MAGNETIC OPTICAL GRADIOMETER AIRFRAME ................................................................................ 19

FOUR SENSOR OPTICAL MAGNETOMETER ACQUISITION SYSTEM .................................................................... 21

4.3 SPECTROMETER SYSTEM .................................................................................................................................................. 23 4.4 RADAR ALTIMETER .......................................................................................................................................................... 23 4.5 GPS NAVIGATION ............................................................................................................................................................ 24 4.6 DATA ACQUISITION ......................................................................................................................................................... 24

5.0 DELIVERABLES .......................................................................................................................................................... 25

5.1 HARDCOPY PRODUCTS ..................................................................................................................................................... 25 5.2 DIGITAL PRODUCTS ......................................................................................................................................................... 25 5.3 DELIVERED PRODUCTS .................................................................................................................................................... 26

6.0 PROCESSING ................................................................................................................................................................ 26

6.1 BASE MAPS ...................................................................................................................................................................... 26 6.2 FLIGHT PATH ................................................................................................................................................................... 27 6.3 TERRAIN CLEARANCE ...................................................................................................................................................... 27 6.4 MAGNETIC DATA PROCESSING ........................................................................................................................................ 27 6.5 SPECTROMETER DATA PROCESSING ................................................................................................................................. 27


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7.0 INTERPRETATION ......................................................................................................................................................... 28

7.1 PREVIOUS EXPLORATION ................................................................................................................................................. 28 7.2 CURRENT SURVEY RESULTS ............................................................................................................................................ 29

8.0 RECOMMENDATIONS ................................................................................................................................................... 32

Table of Figures FIGURE 1 – REGIONAL LOCATION OF THE SURVEY AREA. .................................................................................................................... 7 FIGURE 2 – WHITE RIVER SURVEY AREAS WITH MINERAL CLAIMS. ...................................................................................................... 8 FIGURE 3 – FLIGHT PATH OF THE NORTH BLOCK WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ........................................................... 9 FIGURE 4 - FLIGHT PATH OF THE GOURLAY BLOCK WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ....................................................... 10 FIGURE 5 - FLIGHT PATH OF THE WEST 1 AND WEST 2 BLOCKS WITH AREA TOPOGRAPHY & MINERAL CLAIMS. .................................... 11 FIGURE 6 - FLIGHT PATH OF THE MAIN BLOCK WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ............................................................ 12 FIGURE 7 - FLIGHT PATH OF THE MAIN EAST AND MAIN WEST BLOCKS WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ......................... 13 FIGURE 8 - FLIGHT PATH OF THE EAST AND SOUTH BLOCKS WITH AREA TOPOGRAPHY & MINERAL CLAIMS. .......................................... 14 FIGURE 9 – THE SURVEY USED A BELL 206 AS SHOWN ABOVE. ......................................................................................................... 18 FIGURE 10 – PICO-ENVIROTEC SPECTROMETER GRS-10. ........................................................................................................... 23 FIGURE 11 - FREEFLIGHT RADAR ALTIMETER AND DIGITAL READOUT MODULE. ......................................................................... 24 FIGURE 12 - AGNAV NAVIGATION CONSOLE MOUNTED IN HELICOPTER. ..................................................................................... 24 FIGURE 13 - TRIUMPH MAS-4 HELICOPTER CONSOLE. ............................................................................................................... 25 FIGURE 14 - MAIN MAGNETIC TRENDS ACROSS THE WHITE RIVER SURVEY BLOCKS. ................................................................. 30 FIGURE 15 – TMI WITH AND WITHOUT MAJOR GEOLOGIC UNITS FOR THE MAIN BLOCK. ............................................................ 31 FIGURE 16 - THE EAST BLOCK SHOWS PROMINENT MAGNETIC FEATURES (ARROWS) WITHIN FOLDED GREENSTONE BELTS. ...... 32 FIGURE 17 – SHADED IMAGE OF THE TOTAL MAGNETIC INTENSITY (TMI) OVER THE WHITE RIVER SURVEY AREA. .............................. 38 FIGURE 18 – SHADED IMAGE OF THE MAGNETIC FIRST VERTICAL DERIVATIVE (CVG) OVER THE WHITE RIVER SURVEY AREA. ................ 39 FIGURE 19 – SHADED IMAGE OF THE ANALYTIC SIGNAL (ASIG) OVER THE WHITE RIVER SURVEY AREA. ................................ 40 FIGURE 20 – SHADED IMAGE OF THE MEASURED VERTICAL GRADIENT (MVG) OVER THE WHITE RIVER SURVEY AREA. ........................ 41 FIGURE 21 – SHADED IMAGE OF THE DIGITAL TERRAIN MODEL (DTM) OVER THE WHITE RIVER SURVEY AREA. .................................. 42

List of Appendices Appendix A – List of Survey Outline Points Appendix B – List of Database Columns Appendix C – List of System Results


- 4 -



1.0 Introduction

1.1 Companies

Balch Exploration Consulting Inc. (BECI) has flown a helicopter-borne triaxial magnetometer (Trimag) and spectrometer (Spec) survey for Harte Gold Corporation (Harte or the “Client”), located approximately 27 km northeast of White River, Ontario, centered in Hambleton and Odlum Townships and located approximately 65 km east of the Hemlo (gold) Mine.

1.2 Extent of Survey

The survey was flown in a series of blocks to maintain orthogonality of the flight lines to geologic strike. The first series of blocks totaled 8,408.0 l-km and the second series 1,388.6 l-km. The total line kilometers (l-km) flown was 9,796.6. Block corners are listed in Appendix A.

The first series of blocks was flown from April 4th to April 29th, 2017 where 49 flights were completed. The second series of blocks was flown from June 6th to June 12th, 2017 where 9 flights were completed.

The survey was flown using the WGS-84 Datum and UTM Projection, Zone 16N. The survey data was collected and processed in WGS-84 using proprietary software. The processed data was then imported into Oasis Montaj and further processed. All Geosoft databases, grids and maps were generated in WGS-84, Zone 16N (as easting “x” and northing “y”).

The survey system used was the MG-3 optical magnetometer array manufactured by Triumph Instruments of Georgetown, Ontario and consisted of airframe 3 m long with 3 separate total field magnetometers in a 3-dimensional array to measure the 3 principle magnetic gradients (vertical, inline, crossline) as well as the total magnetic intensity (TMI). Ancillary equipment consisted of a 3-component fluxgate sensor (Triumph MF3), real time differential GPS system for position (Garmin), navigation system (AgNav) and radar altimeter (Freeflight). Also measured was the natural radioactive concentration of potassium, uranium and thorium using a Pico-Envirotec spectrometer (GRS-10). The unit is self-calibrating and transmits spectra in the range of 0.1-3.0 MeV in digital format to a data logger via USB cable.

This report describes the logistics behind the survey such as the area flown (Section 2.0), procedures and personnel (Section 3.0), equipment (Section 4.0), deliverable products (Section

1.3 Duration of Survey

1.4 Datum & Projection

1.5 Survey System

1.6 This Report


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5.0) and processing methods (Section 6.0). The report also includes a preliminary interpretation (Section 7.0) and recommendations (Section 8.0).

Appendix “A” contains the survey outline in WGS-84 Datum and UTM Zone 16N Projection. Appendix “B” contains the specifics of the digital database. Appendix “C” contains the system results.


The property is located in Ontario, Canada. Figure 1 shows a regional location map for the survey area. The closest major center is White River located 26 km to the southwest. The approximate center of the survey block is:

• Main Block, latitude 48o 47’ 50” & longitude -85o 01’ 11” (Figure 2) Survey lines for the blocks are shown in Figures 3 to 8.

The blocks are accessible year-round by maintained gravel roads 100 and 200. Entrance to the roads are possible directly from Highway 17 at the north end of White River or from the east via Highway 631 that runs through blocks South and East.

The survey crew was based in White River, Ontario at the trailer park located on the southwest corner of Highway 17 and Highway 631. The helicopter, geophysical system, trailer and fuel truck were parked behind the White River Motel with permission from hotel management. Refueling of the helicopter came from a 2,000 litre tank towed by a pick-up truck. A fuel cache was also established in the field just west of the Main block within an area graded flat from a nearby gravel pit, located at mile marker 17 on roadway 100. Fuel was arranged in 200 litre sealed drums and tank. The empty drums were immediately removed from the area after use.

The survey area has moderate topography, having a sea level average of 420 meters and a range in elevation of 390-440 meters.

1.7 Report Appendices

2.1 Location

2.2 Access

2.3 Base

2.4 Topography


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The area has little outcrop due to the presence of overburden, predominantly glacial till composed of loose gravel, sand, boulders and clay. In some areas, the overburden thickness is less than one (1) meter but generally the thickness is several meters and even up to fifty (50) meters thick.

The geology around the Sugar Zone has been mapped previously and consists of felsic and mafic volcanic units, metasediments and ultramafics. The gold mineralization within the Sugar Zone is located within the volcanics and these are considered the favoured host rocks for potential new gold targets. There are also strongly magnetic tocks that could be ultramafic units and that could be prospective for nickel, copper and platinum group elements. Along the southern margin of the survey area the geologic units that host the Hemlo Gold Deposit are thought to continue to east through the south and east blocks. Additional greenstone belts have been mapped further to the east. The main purpose of the high resolution airborne magnetic survey is to help identify the location of the favorable greenstone belts.

Power is available at the Harte Gold minesite provided by diesel generators. Locally there are several roads, all gravel that are accessible from Highway 17 to roadway 200 in the north or from Highway 631 to roadway 100 in the south. Roadway 100 crosses the southern portion of the survey area in an east to west direction. There are a number of additional trails that can be accessed by 4-wheel drive, quad-runner or snowmobile, across the entire property.

2.5 Geology

2.6 Infrastructure


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Figure 1 – Regional location of the survey area.


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Figure 2 – White River survey areas with mineral claims.


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Figure 3 – Flight path of the North Block with area topography & mineral claims.


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Figure 4 - Flight path of the Gourlay Block with area topography & mineral claims.


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Figure 5 - Flight path of the West 1 and West 2 Blocks with area topography & mineral claims.


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Figure 6 - Flight path of the Main Block with area topography & mineral claims.


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Figure 7 - Flight path of the Main East and Main West Blocks with area topography & mineral claims.


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Figure 8 - Flight path of the East and South Blocks with area topography & mineral claims.


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3.0 Survey Procedures & Personnel

3.1 Line Spacing

The survey was flown as several contiguous blocks (9 in total) using the line direction and spacing listed below. The survey lines were trimmed 100 m outside of the blocks using the data from the Geosoft database.


Main Survey N65oE 50 m lines 1,937.2 km

Tie N155oE 1000 m lines 99.8 km

Main West Survey N0oE 100 m lines 804.9 km


Main East Survey N0oE 100 m lines 456.3 km


West 1 Survey N0oE 100 m lines 229.1 km


West 2 Survey N0oE 100 m lines 818.3 km


North Survey N320oE 100 m lines 1,306.7 km


South Survey N0oE 100 m lines 1,305.0 km


East Survey N0oE 100 m lines 1,867.1 km


Gourlay Survey N0oE 200 m lines 325.3 km


Total 9,796.6 km

Nominal bird height was 40 m.

Survey speed averaged 45-50 knots. Given the data sampling rate of 10 Hz (0.1 sec) the average station spacing was 2.5 m to 3.5 m.

GPS navigation was provided using the AgNav system. GPS accuracy is ~1-5 m laterally within Canada for latitudes up to 60oN. The GPS antenna was mounted inside the helicopter on the front

3.2 Bird height

3.3 Speed

3.4 Navigation


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dash board on the passenger side. A light bar was located on the helicopter dash board in front of the pilot for on-line navigation. A second GPS antenna was mounted on the HTEM airframe. This location was used to generate the location of the HTEM profiles and MAG profile.

The radar altimeter was fixed to the nose of the helicopter underneath the aircraft and was of the integrated transmit-receive (single antenna) type. The analog signal from the altimeter was transmitted to the HTEM data system for digital conversion and storage by a fixed cable. The altimeter signal was also fed into a digital read-out unit mounted near the dash board of the helicopter in clear vision of the pilot and provided height above ground navigation.

The base station magnetometer was initialized approximately 30 minutes prior to the first survey each day. The unit was equipped with a GPS for time synchronization with the airborne magnetometer. At the end of each day the magnetometer recording unit was withdrawn and the contents of memory downloaded to the processing computer. These digital files were later used to correct for diurnal variations in the earth’s magnetic field that also occur in the airborne magnetometer. Sampling of the base unit was set to 1.0 sec intervals. A low pass filter was later applied using a 60 second length to eliminate short period variations. The sensitivity of the base unit is 0.02 nT.

3.5 Altimeter

3.6 Base-station Magnetometer


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The following personnel were involved in the survey.

3.7 Personnel

Individual Position Description

Jamie Gould Mark Thorton

Pilot Helicopter pilot

Eric Robertson Aircraft Mechanic Maintained the helicopter

Dan LeBlanc Operator Operated and maintained the equipment

Mike Cunningham Field Processing On-site data processing

Mike Cunningham Processing Line-leveling, drift correction, diurnal corrections, tie-line leveling

Steve Balch Reporting Report write-up

Steve Balch Interpretation Final review of data, interpretation write-up and recommendations

Steve Balch Supervision Liaison with Harte. Responsible for the crew

Chris Balch Mapping Plotting maps, printing report, folding and binding

George Flach Harte Vice President, Exploration


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4.0 Equipment

The helicopter used was a Bell 206 L with registration C-FKAW, owned and operated by Wisk Air based in Thunder Bay, Ontario.

Figure 9 – The survey used a Bell 206 as shown above.

Installation of the electronics into the helicopter and the power connection occurred at Thunder Bay, Ontario by Dan LeBlanc and under the supervision of AME (Eric Robertson) who was provided with the Supplemental Type Certificate (STC) approved by Transport Canada. Assembly of the airborne system took place in White River, Ontario. After the AME signed off on the installation there was a short test flight to check the configuration of the system. Production flights began immediately thereafter from the White River Motel.

The system used was developed by Triumph Instruments (Triumph) and is known as the MG-3 (magnetic gradiometer, 3-sensor), a helicopter magnetic gradiometer system that is designed for mineral exploration, oil & gas exploration and geologic mapping. The MG-3 uses Scintrex optical cesium total magnetic field sensors connected to a Triumph Larmour counter board and data control system, all based in the airborne system (or bird). Data acquisition is based on the MAS-4 unit installed in the helicopter. The system is more specifically described below.

4.1 Helicopter

4.2 Airborne System


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MG-3 Airborne Magnetic Optical Gradiometer Airframe

MAIN FEATURES

✓ High sensitivity optical sensors ✓ Full gradient measurement ✓ Calibrated total magnetic field ✓ 3 m (10 ft) sensor separation

✓ Light weight (under 170 Kg) ✓ Full ancillary equipment support ✓ Absolute magnetometer calibration ✓ Real-time compensation

SUMMARY The MG-3 airframe is based on the proven Scintrex CS-3 cesium optical magnetometer sensor. The total field gradient is measured along the three principle axes. The on-board control unit features high sensitivity Larmor counters, RS 232 inputs for ancillary data such as GPS and Altimeter, on-board flux-gate magnetometer and tiltmeter and barometric altimeter. All data collected on the airframe is converted to digital format and transmitted to the helicopter using Can-Bus protocol. The light weight airframe can be towed by smaller, more efficient helicopters to reduce the overall cost of the survey. The frame is dismantled into pieces weighing less than 25 Kg each and 3 m maximum length for easy transport and shipping by ground or air.


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SPECIFICATIONS

Sensors

Total Field Magnetometer Three (3) optical magnetometers Single Component Magnetometer one 3-axis fluxgate sensor

Sensitivity

Optical sensor +/- 0.001 nanotesla @ 10 Hz Gradients (unfiltered) +/- 0.05 nT/m

Fluxgate magnetometer +/- 10 nanotesla @ 10 Hz

Signal

Total Field Gradients Total Field

Hx, Hy, Hz

TMI

Recording Laptop via USB A/D converters 24-bit, 1 kHz Sample period 100 msec

Data output

USB @ 10 Hz

Inputs

Radar Altimeter

Helicopter GPS-NAV Helicopter GPS-IMU Airframe

Total Field Magnetometer Airframe Spectrometer

Helicopter

Mechanical

Temperature

-30oC to +40oC

Dimensions 3 m by 3 m by 3 m Weight 170 Kg (375 lbs)

Power required (typical)

50 A @ 28 VDC, 1.4 kW


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MAS-4

Four Sensor Optical Magnetometer Acquisition System

FEATURES

✓ Navigation ✓ GPS and IMU ✓ Accelerometers ✓ Radiometrics support

✓ Radar altimeter ✓ Up to 4 optical magnetometers ✓ High sensitivity fluxgate sensor ✓ Computer interface & acquisition

SUMMARY The MAS-4 electronics unit is designed for fixed-wing or helicopter optical magnetometer array installations. The unit supports up to 4 optical magnetometers with a dedicated TNC input and Larmor counter for each sensor. Also included is a high sensitivity fluxgate sensor and accelerometers that allow for conventional real time magnetic compensation (i.e. Leliak coefficients), accelerometer and GPS compensation or a combination.

FRONT VIEW

REAR VIEW


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SPECIFICATIONS

Signal

Optical magnetometer

Up to 4 Cesium Counter sensitivity < 0.001 nT @ 10 Hz

Fluxgate magnetometer 1 nT @ 10 Hz Data output

10 Hz

Ancillary

Radar Altimeter

Helicopter/Aircraft GPS Helicopter/Aircraft

Navigation Helicopter/Aircraft Spectrometer

Helicopter/Aircraft

Mechanical

Temperature

-30oC to +40oC

Dimensions (W x D x H) 19” x 19” x 5.25” Weight 8.6 Kg (19 lbs)

Maximum power

50 A @ 28 VDC, 1.4 kW


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The spectrometer is the Pico-Envirotec GRS-10 which contains five (5) sodium iodide (NaI) detectors, four (4) down-looking and one (1) up-looking. The up-looking detector is used to remove the effects of cosmic radiation and the down-looking detectors record the full spectra of natural radiation in the energy range 0.1 – 3.0 MeV including the spectral windows of potassium (K – 1.46 MeV), uranium (U – 1.76 MeV) and thorium (Th – 2.64 MeV).

Figure 10 – Pico-Envirotec spectrometer GRS-10.

A GSM-19 base station magnetometer (manufactured by Gem Systems) was used to record variations in the earth’s magnetic field and referenced into the master database using a GPS UTC time stamp. This system is based on the Overhauser principle and records total magnetic field to within +/- 0.02 nT at a one (1) second time interval.

The Triumph system used a Freeflight 4500 radio altimeter to measure system height above ground. This information was available to the pilot during flight in the form of a digital readout on the TR-40 and as stored digital data for later incorporation into the database.

4.3 Spectrometer System

4.4 Radar Altimeter


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Figure 11 - Freeflight radar altimeter and digital readout module.

Navigation was provided by the AgNav Incorporated (AgNav-2 version) GPS navigation system for real-time locating while surveying. The AgNav unit was connected to a Tee-Jet GPS system receiver that uses the WAAS system – considered to be a standard in aircraft navigation and accurate throughout a large portion of Canada. Also used was a Garmin antenna located on the HTEM airframe. The Garmin antenna is capable of sub five-meter accuracy and was sampled at 10 Hz.

Figure 12 - AgNav navigation console mounted in helicopter.

Data was collected through the main console (the MAS-4, see Figure 9) which contained both the acquisition system and the power control for the bird (28 VDC).

4.5 GPS Navigation

4.6 Data Acquisition


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The output of the MAS-4 is digital USB and was transmitted to a laptop computer running the Triumph MAG-DAS software. Raw data was saved to the laptop hard-drive at a 10 Hz sample rate and included ancillary data such as bird GPS, navigation information, 3-component fluxgate outputs, radar altimeter, temperature and barometric altimeter.

Figure 13 - Triumph MAS-4 helicopter console.

5.0 Deliverables

Several deliverable products are generated from the survey including a set of hard-copy maps, a final report (this document), and a digital archive of the data with digital copies of map products.

Hardcopy map products are provided at 1:20,000 scale and include a topographic back-drop. Each map contains a scale bar, north arrow, coordinate outlines (easting & northing), flight lines with line number and direction and geophysical data. The survey block consists of multiple map plates, customized to fit within the boundaries of a 42” plotter. Each map contains a technical summary of specifications and a colour bar that illustrates the range of each of the geophysical data.

The geophysical data is provided in a Geosoft GDB database. At the Client’s request, a xyz archive of the same database in ASCII format can be provided.

5.1 Hardcopy Products

5.2 Digital Products


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The contents of the database are described more fully in Appendix B. A copy of the GDB database is kept by BECI as a courtesy to the Client but can be deleted at the Client’s request. In addition to the GDB file database, copies of all geophysical grids are provided as GRD files (also in Geosoft format). The cell size used for gridding is nominally 1/4 of the flight line spacing. Map files in Geosoft MAP format are also provided as deliverables. The Client can use a free viewer available from Geosoft Limited (www.geosoft.com) for viewing and plotting map files, but not for editing or changing them.

The following map products are delivered in hard-copy and digital (Geosoft Map & PDF) format. Each map product is colour shaded on a topographic backdrop with flight lines and contours.

▪ Total Magnetic Intensity (TMI)

▪ Calculated First Vertical Magnetic Gradient (CVG)

▪ Measured First Vertical Magnetic Gradient (MVG)

▪ Digital Terrain Model

▪ Computed Analytic Signal

The following additional products are delivered in digital format:

▪ Copy of this report in .pdf format

▪ Geosoft database .GDB of all collected data

▪ All .MAP and .GRD files

6.0 Processing

Preliminary data processing is performed using BECI proprietary methods. This includes removal of drop-outs and magnetic compensation. This also includes calculation of the vertical magnetic gradient, analytic signal, digital terrain model, bird height, and merging of the base station magnetic data (sampled at 1.0 sec) with the survey data (sampled at 0.1 sec).

All base maps are presented in the Datum and Projection defined in the Introduction of this report. All map coordinates refer to projected easting and northing in meters. All maps contain the actual flight paths as recorded during surveying and have been clipped to the survey polygon with a 100m extension. The topographic vector data is obtained from Natural Resources Canada.

5.3 Delivered Products

6.1 Base Maps


http://www.geosoft.com/

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Topographic shading is derived from 90 m resolution digital elevation model (DEM) data provided by the NASA Shuttle Radar Topography Mission (SRTM) and shaded at an inclination of 45o and declination of 45º.

The helicopter used “ideal” flight lines as guidance during surveying as displayed on the real-time AgNav system with the aid of a helicopter mounted GPS. A separate GPS mounted to the bird was used to record actual position. The sample rate of the GPS was 10 Hz, the same as all the other data collected in flight. The GPS unit outputs both latitude, longitude and easting, northing values, all in the WGS-84 Datum, using a UTM Projection. The positional data is not filtered but occasional bad data points are interpolated using a linear algorithm.

The radar altimeter is located under the base of the helicopter. The helicopter mounted radar altimeter is used to maintain terrain clearance by the pilot. A digital indicator is mounted on the dashboard of the helicopter. This installation is approved by a licensed helicopter engineer provided by the helicopter operator.

The magnetic data (i.e. MAG from the airborne sensor and BMAG from the ground sensor) is collected without a lag time (i.e. synchronous with the optical magnetometer data and UTC time), therefore a lag time correction is not applied. In areas where the MAG sensor has become unlocked (e.g. most often during turn-arounds), the total magnetic field values are replaced with a dummy value (“*”) and the data is later interpolated in Geosoft. The raw ASCII survey data files and BMAG ASCII data files are imported into BECI software and merged using UTC time, common to both files. A quality control check of the BMAG data is made on a day to day basis. Diurnal magnetic corrections are applied to the MAG data using the BMAG data. The base station data (i.e. BMAG) is linearly interpolated from a 1.0 sec sample rate to 0.1 sec to correspond to the flight data after the BMAG has been filtered with a 60 sec filter. Once the MAG data has the diurnal field subtracted from it, a heading correction is applied and the resulting total magnetic intensity (TMI) is micro-leveled.

The Spectrometer data is extracted from the full spectra using the proprietary software PEIview developed by Pico-Envirotec of Concorde, Ontario.

6.2 Flight Path

6.3 Terrain Clearance

6.4 Magnetic Data Processing

6.5 Spectrometer Data Processing


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The spectra are auto-calibrated using naturally occurring radioactive peaks. Upon extraction, separate windows are calculated for the total count, K, U and Th. The spectra is averaged over 1.0 second intervals. A separate GPS time stamp is collected with the radiometric data. This time stamp is later used to extract the GPS positional data from the master file containing the magnetometer data.

7.0 Interpretation

Exploration within the region was limited to airborne geophysical surveys and some prospecting and geological mapping around the time of the discovery of the Hemlo Gold Mine in the early 1980s. In 1991 the Sugar Zone was outlined over a strike length of 1.5 km by Hemlo Gold Mines Inc. during a prospecting and trenching program and subsequent IP survey. During 1993 and 1994 Hemlo Gold drilled several significant mineral intersections and continued with IP and ground MAG surveys. In 1998 the property was optioned to Corona Gold Corporation (51%) and Harte Gold Corporation (49%) with Corona as the Operator. An extensive drill program resulted in the first resource estimate in 1999. Drilling continued to 2004 where the Sugar Zone was further extended to 300 m vertical depth and a new resource estimate was completed. In 2008 Fugro flew a Dighem helicopter EM and MAG survey over most of the property. This survey led to several new showings of gold in volcanic rocks. In 2012 Geotech flew a VTEM survey over a portion of the property. In 2015 Geotech flew additional VTEM over the property and once the 2 surveys were merged, coverage was almost 100% over the existing mineral claims. Ground IP surveys continued in 2015, 2016 and 2017 expanding the previous coverage both north and south of the known Sugar Zone. Also in 2016, Crone Geophysics conducted an Escan resistivity and IP survey over the core of the Sugar Zone extending northward. In 2017 Harte Gold staked additional claims beyond the Sugar Zone in areas thought to contain volcanic and sedimentary rocks that are commonly found around the known mineralization with a recommendation to conduct high resolution airborne MAG with follow-up HTEM surveys over selective areas having potential to host VMS-style and Ni-Cu-PGE mineralization.

7.1 Previous Exploration


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An image of the total magnetic intensity (or TMI) is shown in Figure 10 for all combined survey blocks. The image was generated using a 25-m cell size. There are several magnetic features that are of exploration significance. Some of the highlights are:

1. Within the Main Block a high amplitude magnetic trend strikes south-southeast for 4.4 km with an approximate width of 1.1 km. This feature appears to be a large ultramafic intrusion and given its proximity to the Sugar Zone could be important for finding additional gold-bearing mineralization (as a potential heat source). This feature does not appear to be significant in the geologic map of the area.

2. Further to the north of the identified ultramafic above there is a second high-amplitude magnetic trend that is also likely a significant ultramafic intrusion and continues for another 3.5 km to the north. This feature is not as continuous as the one above and could consist of a series of layers of ultramafic intruded into the host volcanics and sediments (also making it an interesting target area).

3. Along the South Block a low amplitude magnetic feature strikes east-west for a

distance greater than 22 km and is coincident with a mapped greenstone belt thought to connect to the Hemlo Gold Deposit further to the west.

4. A southeast trending low amplitude magnetic feature from the Main Block intersects

the South and East Blocks in a large 4-5 km diameter magnetic low that is interpreted to be a mixture of sediments and volcanics.

5. A low amplitude magnetic feature strikes east-west along the East Block for 22 km

and is interpreted to represent continuing greenstone units across the entire Harte Gold mineral claim outline.

6. The North Block reveals a north-northeast trending magnetic low that is interpreted

to be greenstone (consisting of sediments and volcanics) for 17 km.

7. Within the interpreted greenstone units there are several discrete magnetic features that could be ultramafic units or iron formation that would have intruded the sediments and volcanics in a manner like the mineralization at the Sugar Zone.

7.2 Current Survey Results


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Figure 14 - Main magnetic trends across the White River survey blocks.

A close-up image of the TMI is shown in Figure 11 with geology superimposed over the image to the left and only the ultramafics superimposed over the image to the right. Some important observations are: a) The ultramafic rocks as mapped do not correspond well to the much larger anomalous high

magnetic field feature suggesting there is more ultramafic than is mapped.

b) The northwest margin of the volcanic-granite contact is poorly mapped based on the lack of change in the TMI which occurs much further to the west. There is more volcanic than is mapped, therefore.

c) The eastern volcanic-granite contact is well mapped but further to the south this contact is

less certain.

1

2

7

6

4

3

5 7


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d) The sediment is mapped as covering much of Dayohessarah Lake but in fact much of the sediment mapped near the ultramafic is likely ultramafic and not sediment.

e) The ultramafic rocks appear to continue to the north and curve around to the northeast beyond Dayohessarah Lake but are mapped as volcanics.

Figure 15 – TMI with and without major geologic units for the Main Block.

Within the East Block there are a few strongly magnetic features that could represent ultramafic or iron

formation intrusions into the volcanic- and sediment-dominated greenstone units that show significant

folding (Figure 12). In some cases, the strike length of the magnetic features is over 2 km. Such features

could be analogous to the ultramafic adjacent to the Sugar Zone mineralization.

a

b

e

c

d

b

e

a

d

c


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Figure 16 - The East Block shows prominent magnetic features (arrows) within folded greenstone belts.

8.0 Recommendations

1. Compare the TMI on the Main Block with the mapped ultramafic units and derive a geologic

map that better highlights the extent of ultramafics. Compare this with any drillcore in the area.

2. Review the southeast margin of the Main Block volcanic contact. Significant volcanic rocks could extend further to the east than are currently mapped. Such volcanics would be on trend with the existing Sugar Zone.

3. Review the ultramafic rocks to the north of the Sugar Zone where they are indicated to be

extensive from the TMI but have not been mapped as such.

4. The western volcanic-granite contact could be better mapped using the TMI. This would extend the volcanics by several hundred meters to the west in this area.


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5. Ground truthing of the east-west striking greenstone across the South Block should be possible as the area is easily accessible by Highway 631 and several logging roads. Such a program could be better organized by a satellite image of the area with expected contacts mapped onto the satellite image using the TMI as a base map. It is noted that any sediment-volcanic contact is probably located under overburden as the sediment is the most easily eroded rock type in the area (and the area contains significant overburden).

6. The area within the East Block could be prospected around the magnetic highs to determine

their cause (iron formation or ultramafic). Such a project could be helicopter supported or using a float plane to one of the nearby lakes. Areas prospective for outcrop could be outlined on a satellite map prior to the ground program.

7. Some of the discrete magnetic trends should be flown with HTEM for possible VMS-style or

Ni-Cu-PGE mineralization. There are a limited number of these trends which would limit the HTEM survey to a small portion of the airborne magnetic coverage (about 25%).

8. Review the VTEM and Fugro conductors on the Main Block to determine any trends that may

extend onto the expanded ground covered by the current magnetic survey.

Respectively Submitted, Stephen Balch Balch Exploration Consulting Inc. BECI


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APPENDIX A LIST OF SURVEY OUTLINE POINTS

The following survey polygons were produced by BECI and approved by the Client. The Projection is WGS84, UTM Zone 16 North.

White River Survey Areas

Main

Easting Northing 648665

640330

644690

653085

5392230

5410365

5412405

5394280

Main West


640300

644200

644200

648300

648300

646800

640300

5409750

5390600

5390600

5393000

5393000

5396000

5396000

5410500

Main East


652200

653000

653000

654500

654500

653000

648000

647000

647000

648000

648000

652200

5407500

5402600

5402600

5401000

5401000

5395300

5394400

5405500

5405500

5408500

5408500

5407400

5407400

West 1


633800

640300

640300

5411700

5415225

5415225

5411700

North


657180

644713

640330

638345

638345

5427800

5425230

5412324

5410366

5412760

5417800

South


657755

633700

633700

635355

635355

644160

644160

648295

648650

648650

652950

5387365

5384165

5384165

5387365

5387365

5390565

5390565

5393000

5393000

5392200

5387365

5387365

West 2


625000

641700

641700

5397600

5402500

5402500

5397600

East


648600

653080

666555

671175

671175

676050

676050

663300

659450

659450

649300

5387365

5392190

5394250

5404965

5404965

5406750

5406750

5396950

5396950

5392150

5387365

5387365

Gourlay


652250

644900

644900

5420170

5407500

5407500

5412360


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APPENDIX B LIST OF DATABASE COLUMNS (GEOSOFT GDB FORMAT)

MAGNETOMETER DATA

Channel Name Description

X X positional data (meters – WGS84, UTM Zone 16 North)

Y Y positional data (meters – WGS84, UTM Zone 16 North)

FID Time fiducial at 0.1 second intervals

LINE Flight line number

DIR Line direction

Z Elevation (feet)

BLAT Latitude from bird GPS (deg)

BLON Longitude from bird GPS (deg)

BTIME Time from bird GPS (seconds past midnight)

NX Navigation easting (meters, WGS84, UTM Zone 16N)

NY Navigation northing (meters, WGS84, UTM Zone 16N)

NZ Navigation elevation (meters, WGS84, UTM Zone 16N)

NLAT Navigation latitude data (degree – WGS84)

NLON Navigation longitude data (degree – WGS84)

NTIME Navigation time

RADALT Radar Altimeter (ft)

VEL Velocity of airframe (m/s)

ANG Angle of flight line (azimuth – deg)

VIN Input voltage VDC

IIN Input current A

BMAG Base station magnetic diurnal (nT)

MAG Diurnally corrected Total Magnetic field data (nT)

TDG Temperature degrees Celsius

BARO Barometric altimeter

M1U Upper magnetometer (nT)

M2L Lower left magnetometer (nT)

M3R Lower right magnetometer (nT)

MC Central magnetometer (nT)

Gx In-line magnetic gradient (nT/m)

Gy Cross-line magnetic gradient (nT/m)

Gz Vertical magnetic gradient (nT/m)

Tx Tiltmeter x component (deg)

Ty Tiltmeter y component (deg)

Tz Tiltmeter z component (deg)

Fx Fluxgate x component (nT)

Fy Fluxgate y component (nT)


- 36 -



Fz Fluxgate z component (nT)

Ft Fluxgate total field (nT)

ASIG Analytic signal (nT)

PC_TIME Laptop time hh:mm:ss:hs

SPECTROMETER DATA


SFID Spectrometer fiducial (0.1 secs)

EMFID Console fiducial (0.1 secs)

LINE Flight line number

DIR Line direction (NE+, SW-)

ANG Line direction (azimuth, deg)

X Navigation easting (meters, WGS84, UTM Zone 16N)0+

Y Navigation northing (meters, WGS84, UTM Zone 16N)

Z Navigation elevation (meters, WGS84, UTM Zone 16N)

RALT Radar altimeter (ft)

LAT Navigation latitude (deg, WGS84)

LON Navigation longitude (deg, WGS84)

GPST Navigation time (seconds past midnight)

TOTAL Total count (counts)

K Potassium (counts)

U Uranium (counts)

TH Thorium (counts)

PCTIME Laptop local time (hh:mm:ss:hs)

LOCAL Laptop local time (seconds past midnight)

C1 Raw spectra (counts)

PC_TIME Laptop time hh:mm:ss:hs


- 37 -



APPENDIX C LIST OF SYSTEM RESULTS

▪ The Total Magnetic Intensity (TMI) for White River is shown in Figure 17.

▪ The Calculated First Vertical Derivative (CVG) for White River is shown in Figure 18.

▪ The Computed Analytic Signal (ASIG) for White River is shown in Figure 19.

▪ The Measured Vertical Gradient (MVG) for White River is shown in Figure 20.

▪ The Digital Terrain Model (DTM) for White River is shown in Figure 21.

▪ The Total Count (TC) for White River is shown in Figure 22.

▪ The Potassium Count (K) for White River is shown in Figure 23.

▪ The Uranium Count (U) for White River is shown in Figure 24.

▪ The Thorium Count (Th) for White River is shown in Figure 25.


- 38 -



Figure 17 – Shaded image of the Total Magnetic Intensity (TMI) over the White River survey area.


- 39 -



Figure 18 – Shaded image of the magnetic first vertical derivative (CVG) over the White River survey area.


- 40 -



Figure 19 – Shaded image of the Analytic Signal (ASIG) over the White River survey area.


- 41 -



Figure 20 – Shaded image of the Measured Vertical Gradient (MVG) over the White River survey area.


- 42 -



Figure 21 – Shaded image of the Digital Terrain Model (DTM) over the White River survey area.


- 43 -



Figure 22 – Image of the Total Count (TC) over the White River survey area.


- 44 -



Figure 23 – Image of the Potassium Count (K) over the White River survey area.


- 45 -



Figure 24 – Image of the Uranium Count (U) over the White River survey area.


- 46 -



Figure 25 – Image of the Thorium Count (Th) over the White River survey area.


Appendix D – Balch Exploration Consulting Inc. Report on a Helicopter-Borne Time Domain Electromagnetic and Magnetic Survey at the Eagle Showing

- 1 -

HELICOPTER TIME DOMAIN AND MAGNETIC SURVEY

JOB 2017-0717 | HARTE GOLD | EAGLE SHOWING

REPORT ON A HELICOPTER-BORNE TIME DOMAIN ELECTROMAGNETIC AND MAGNETIC SURVEY

AT THE EAGLE SHOWING

Project Name:

Eagle Showing


Client:

Contractor:

Date:

October 20th, 2017


- 2 -



Table of Contents

TABLE OF FIGURES............................................................................................................................................................... 4

1.0 INTRODUCTION ............................................................................................................................................................ 5

1.1 COMPANIES ....................................................................................................................................................................... 5 1.2 EXTENT OF SURVEY .......................................................................................................................................................... 5 1.3 DURATION OF SURVEY ...................................................................................................................................................... 5 1.4 DATUM & PROJECTION ..................................................................................................................................................... 5 1.5 EM SYSTEM ...................................................................................................................................................................... 5 1.6 THIS REPORT ..................................................................................................................................................................... 5 1.7 REPORT APPENDICES ........................................................................................................................................................ 6





4.0 EQUIPMENT ................................................................................................................................................................. 14

4.1 HELICOPTER ..................................................................................................................................................................... 14 4.2 HTEM SYSTEM ................................................................................................................................................................ 14 4.3 MAGNETOMETER SYSTEM ............................................................................................................................................... 15 4.4 RADAR ALTIMETER .......................................................................................................................................................... 16 4.5 GPS NAVIGATION ............................................................................................................................................................ 17 4.6 DATA ACQUISITION ......................................................................................................................................................... 17

5.0 DELIVERABLES .......................................................................................................................................................... 18


6.0 PROCESSING ................................................................................................................................................................ 19

6.1 BASE MAPS ...................................................................................................................................................................... 19 6.2 FLIGHT PATH ................................................................................................................................................................... 20 6.3 TERRAIN CLEARANCE ...................................................................................................................................................... 20 6.4 MAGNETIC DATA PROCESSING ........................................................................................................................................ 20 6.5 EM DATA PROCESSING .................................................................................................................................................... 20

7.0 INTERPRETATION ......................................................................................................................................................... 21


- 3 -




- 4 -



Table of Figures FIGURE 1 – REGIONAL LOCATION OF THE EAGLE SURVEY AREA. .......................................................................................................... 8 FIGURE 2 – EAGLE SURVEY AREA WITH MINERAL CLAIMS. .................................................................................................................. 9 FIGURE 3 – FLIGHT PATH OF THE EAGLE 1 SURVEY AREA WITH AREA TOPOGRAPHY & MINERAL CLAIMS. .............................................. 10 FIGURE 4 - FLIGHT PATH OF THE EAGLE 2 SURVEY AREA WITH AREA TOPOGRAPHY & MINERAL CLAIMS. .............................................. 11 FIGURE 5 – THE SURVEY USED A EUROCOPTER AS350 D2 AS SHOWN ABOVE. ................................................................................... 14 FIGURE 6 – THE TRIUMPH AIRTEM TS-150 HTEM SYSTEM. ........................................................................................................ 15 FIGURE 7 – AEROCOMP MAGNETOMETER HOUSING AND SCINTREX CS-3 CESIUM TOTAL FIELD MAGNETOMETER. ..................... 16 FIGURE 8 - FREEFLIGHT RADAR ALTIMETER AND DIGITAL READOUT MODULE. ........................................................................... 17 FIGURE 9 - AGNAV NAVIGATION CONSOLE MOUNTED IN HELICOPTER........................................................................................ 17 FIGURE 10 - TRIUMPH TDS-2400 EM CONSOLE AND ACQUISITION SYSTEM. .............................................................................. 18 FIGURE 11 - OFF-TIME AND ON-TIME "Z"-AXIS PROFILES FOR L-90. ........................................................................................... 22 FIGURE 12 - OFF-TIME (UPPER) AND ON-TIME (LOWER) RESPONSE FOR "Z"-AXIS COIL L-110. .................................................... 24 FIGURE 13 - OFF-TIME (UPPER) AND ON-TIME (LOWER) RESPONSE FOR "Z"-AXIS COIL L-140. .................................................... 24 FIGURE 14 - PLAN MAP SHOWING CONDUCTOR PICKS AND PROPOSED DRILLHOLE.APPENDIX A .................................................. 26 FIGURE 15 – SHADED IMAGE OF THE MAGNETIC FIRST VERTICAL DERIVATIVE (CVG) OVER THE EAGLE SURVEY AREA............................ 30 FIGURE 16 – SHADED IMAGE OF THE TOTAL MAGNETIC INTENSITY (TMI) OVER THE EAGLE SURVEY AREA. ......................................... 31 FIGURE 17 – IMAGE OF THE EARLY OFF-TIME (ZOFF[20]) OVER THE EAGLE 1 SURVEY AREA. ............................................................ 32 FIGURE 18 – IMAGE OF THE MID OFF-TIME (ZOFF[30]) OVER THE EAGLE 1 SURVEY AREA. ............................................................... 33 FIGURE 19 – IMAGE OF THE LATE OFF-TIME (ZOFF[40]) OVER THE EAGLE 1 SURVEY AREA. .............................................................. 34 FIGURE 20 – IMAGE OF THE EARLY OFF-TIME (ZOFF[20]) OVER THE EAGLE 2 SURVEY AREA. ............................................................ 35 FIGURE 21 - IMAGE OF THE MID OFF-TIME (ZOFF[30]) OVER THE EAGLE 2 SURVEY AREA. ................................................................ 36 FIGURE 22 - IMAGE OF THE LATE OFF-TIME (ZOFF[40]) OVER THE EAGLE 2 SURVEY AREA. .............................................................. 37

List of Tables TABLE 1 - SUMMARY OF FLIGHT SPECIFICATIONS FOR SURVEY AREAS. ...................................................................................... 12 TABLE 2 - SPECIFICATIONS FOR THE MAGNETOMETER SECTION ........................................................................................................ 16 TABLE 3 - HTEM CONDUCTOR PICKS FOR THE EAGLE SHOWING. .............................................................................................. 23


- 5 -



1.0 Introduction

1.1 Companies

Balch Exploration Consulting Inc. (BECI) has flown a helicopter-borne time domain electromagnetic (HTEM) and magnetic (MAG) survey for Harte Gold Corporation (Harte), east of White River, Ontario, in Odlum Township, located approximately 9 km southwest of the Sugar Zone gold deposit. The area is known as the Eagle Showing.


The area was flown twice. The initial block (EAGLE1) was flown using north-south lines with a 100-m line spacing and covered the entire claim area (1.6 x 1.6 km). The anomalous conductor identified from the first survey was reflown using a 50-m line spacing and a 45o line direction to cover the conductor perpendicular to strike. Flight specifications are summarized in Section 3 and block corners are listed in Appendix A.

The EAGLE1 block was flown on July 27th, 2017 and the EAGLE2 block was flown on July 29th, 2017. Both blocks required one flight each.


The HTEM system used was the TS-150 manufactured by Triumph Instruments of Georgetown, Ontario and consisted of a main 8.5 m transmitter loop to energize the earth using a triangular current (the primary magnetic field). Three orthogonal receiver coils, a “z”-coil measuring the vertical magnetic field, an “x”-coil measuring the horizontal magnetic field in-line with the flight line direction and a “y”-coil measuring the horizontal magnetic field perpendicular to the flight line direction all recorded the secondary magnetic field (the earth response). Ancillary equipment consisted of a single sensor total field magnetometer (Scintrex CS-3 with proprietary counter), real time differential GPS system for position (Garmin), navigation system (AgNav) and radar altimeter (Freeflight).

This report describes the logistics behind the survey such as the property description (Section 2.0), survey procedures and personnel (Section 3.0), equipment (Section 4.0), deliverable



1.5 EM System

1.6 This Report

- 6 -



products (Section 5.0) and processing methods (Section 6.0). The report also includes a preliminary interpretation (Section 7.0) and recommendations (Section 8.0).



The properties are in Ontario, Canada. Figure 1 shows a regional location map for the survey area. The closest major center is White River located 22 km to the southwest. The approximate center of the survey block is:

• EAGLE1 and EAGLE2, latitude 48o 35’ 42” & longitude -85o 16’ 38” (Figure 2) Survey lines for the blocks are shown in Figure 3.

The Block is accessible by 4-wheel drive truck, snow mobile or ATV vehicle using existing logging roads that are in use by the Harte exploration team. The closest access point is from Highway 17 onto roadway 200 at the north end of White River.

The survey crew was based in White River, Ontario at the trailer park located on the southwest corner of Highway 17 and Highway 631. The helicopter, HTEM system, trailer and fuel truck were parked behind the White River Motel with permission from hotel management. Refueling of the helicopter came from a 2,000 litre tank towed by a pick-up truck. A fuel cache was also established in the field just west of the EAGLE1 block within an area graded flat from a nearby gravel pit, located at mile marker 17 on roadway 100. Fuel was arranged in 200 litre sealed drums and tank. The empty drums were immediately removed from the area after use.

The survey area has moderate topography, having a sea level average of 420 meters and a range in elevation of 390-440 meters.


2.1 Location

2.2 Access

2.3 Base

2.4 Topography

- 7 -



The area has little outcrop due to the presence of overburden, predominantly glacial till composed of loose gravel, sand, boulders and clay. In some areas, the overburden thickness is less than one (1) meter but generally the thickness is several meters and even up to fifty (50) meters thick.

The area is known to be prospective for gold with the Harte Gold Sugar Zone located approximately 9 km to the northeast. Sixty kilometers (60 km) further west is the Hemlo Gold Mine. The geology hosting the Hemlo Deposit is thought to extend eastward from the mine and continuing south of the Eagle Showing approximately 15 km away. The area around the Eagle Showing is not well-mapped. Locally there are volcanic rocks intermixed with metasediments and ultramafic intrusions. The ultramafic rocks are identified based on their high susceptibility making them visible in the total magnetic intensity (TMI) image. Previous prospecting around the Eagle Showing revealed pyrite-rich sulphide within a host rock of metasediments. After completion of the HTEM survey and the identification of a significant conductor, additional prospecting revealed sphalerite and chalcopyrite within a pyrite-rich sulphide also containing pyrrhotite. There may also be galena present. The host rock of the latter samples appears to be volcanic in origin suggesting potential for VMS (volcanogenic massive sulphide) mineralization.


2.5 Geology

2.6 Infrastructure

- 8 -



Figure 1 – Regional location of the Eagle survey area.

- 9 -



Figure 2 – Eagle survey area with mineral claims.

- 10 -



Figure 3 – Flight path of the Eagle 1 survey area with area topography & mineral claims.

- 11 -



Figure 4 - Flight path of the Eagle 2 survey area with area topography & mineral claims.

- 12 -




3.1 Line Spacing

The survey was flown using the line directions and spacings listed below. The survey lines were trimmed 100 m outside of the blocks using the Geosoft database.

Area Line Direction Line Spacing Number of km

Eagle One Survey N0oE 100 m lines 57.5 km

Tie N90oE no lines

Eagle Two Survey N53oE 50 m lines 51.0 km

Tie N143oE no lines Table 1 - Summary of flight specifications for survey areas.



GPS navigation was provided using the AgNav system. GPS accuracy is ~1-5 m laterally within Canada for latitudes up to 60oN. The GPS antenna was mounted inside the helicopter on the front dash board on the passenger side. A light bar was located on the helicopter dash board in front of the pilot for on-line navigation. A second GPS antenna was mounted on the HTEM airframe. This location was used to generate the location of the HTEM profiles and MAG profile.


3.2 Bird height

3.3 Speed

3.4 Navigation

3.5 Altimeter

- 13 -






3.7 Personnel


Joel Breton Pilot Helicopter pilot

Mark St Armand Aircraft Mechanic Maintained the helicopter






Steve Balch Supervision Liaison with Harte Gold. Responsible for the crew


George Flach Harte Gold Vice President, Exploration

- 14 -



4.0 Equipment

The helicopter used was a Eurocopter AS350 D2 with registration C-GSSS, owned and operated by Expedition Helicopters Inc. based in Cochrane, Ontario.

Figure 5 – The survey used a Eurocopter AS350 D2 as shown above.

Installation of the electronics into the helicopter and the power connection occurred at Cochrane, Ontario by Dan LeBlanc and under the supervision of AME (Mark St Armand) who was provided with the Supplemental Type Certificate (STC) approved by Transport Canada. Assembly of the HTEM system took place south of White River, Ontario at the Moose Fishing Lodge located in Highway 17, mile marker 952. After the AME signed off on the installation there was a short test flight to check the configuration of the system. Production flights began immediately thereafter, and the crew transferred to a trailer park in White River, Ontario.

The system used was developed by Triumph Instruments (Triumph) and is known as AirTEMTM, a helicopter time domain electromagnetic (HTEM) system that is designed for mineral exploration, oil & gas exploration and geologic mapping. AirTEMTM is based on the concept of a concentric transmitter and receiver geometry originally developed by Scott Hogg and Moishe Granovsky at Aerodat Limited in the 1980s under direction of Wally Boyko.

4.1 Helicopter

4.2 HTEM System

- 15 -



The AirTEMTM (TS-150) system features an 8.5 m diameter transmitter weighing approximately 500 Kg and producing up to 150,000 Am2 in transmitted power. The system records the full waveform and “X”, “Y” and “Z” coil measurements for improved interpretation of complex conductor responses. Measurements of the total magnetic field are also provided and optional radiometrics is available.

Figure 6 – The Triumph AirTEM TS-150 HTEM System.

Features

▪ Rigid concentric geometry

▪ Full waveform recording

▪ Software selectable base frequency ▪ Software selectable on-time period

▪ dB/dt and B-field profiles

▪ Total magnetic field

Advantages

▪ Excellent early off-time response ▪ Excellent performance in rugged terrain

▪ Direct drilling of targets is possible

▪ Improved nomogram correlation ▪ Interpretation/modeling software readily available

The airborne magnetometer system consisted of the bird housing, the sensor with control module (see Figure 7) and Larmour frequency counter. The airborne magnetometer data was collected at a rate of 10 Hz. The frequency output from the sensor was counted in the digital electronic section located approximately 2.0 m away from the sensor at the front of the bird. The digital

4.3 Magnetometer System

- 16 -



magnetometer readout was transmitted in RSR 422 format along the tow cable to the data acquisition system in the helicopter. Specifications for the magnetometer sensor are given in Table 1.

Figure 7 – Aerocomp magnetometer housing and Scintrex CS-3 cesium total field magnetometer.

Manufacturer: Scintrex Limited, CS-3

Sensitivity: +/- 0.001 nT

Absolute accuracy: +/- 0.5 nT over operating range maximum

Sample rate: 10 Hz (0.1 sec)

Dynamic range: 30,000 to 90,000 nT, 5,000 nT/m gradient

Heading error: +/-0.15 nT maximum for all sensor orientations

Operating temperature: -32o C to +40o C normally

Tuning method: Dynamic re-starting at 30,000 nT

Volume of sensor: 70 mm3

Table 2 - Specifications for the Magnetometer Section



4.4 Radar Altimeter

http://scintrexltd.com/wp-content/uploads/2017/03/CS-3-product.jpg

- 17 -




Navigation was provided by the AgNav Incorporated (AgNav-2 version) GPS navigation system for real-time locating while surveying. The AgNav unit was connected to a Tee-Jet GPS system receiver that uses the WAAS system – considered to be a standard in aircraft navigation and accurate throughout a large portion of Canada. Also used was a Garmin antenna located on the HTEM airframe. The Garmin antenna is capable of sub five-meter accuracy and was sampled at 10 Hz.


Data was collected through the main console (the TDS-2400, see Figure 10) which contained both the acquisition system and dc-dc power control module (booster circuit) for the transmitter coil.

4.5 GPS Navigation


- 18 -



The main module also included timing control for the EM waveform, synchronization between the transmitter and receiver and recorded all ancillary information (GPS, MAG, EM, RAD ALT). This information was digitized and stored at a rate of 10 Hz. The resulting data string was transmitted to a laptop computer and stored on an internal hard-drive. Data files were copied onto a memory stick after each flight and two back-up copies were made, one on a private ftp site.

Figure 10 - Triumph TDS-2400 EM console and acquisition system.

5.0 Deliverables

Several deliverable products are generated from the survey including a set of hard-copy maps, a final report (this document), and a digital archive of the data with digital copies of map products.

Hardcopy map products are provided at 1:20,000 scale and include a topographic back-drop. Each map contains a scale bar, north arrow, coordinate outlines (easting & northing), flight lines with line number and direction and geophysical data. The survey block consists of multiple map plates, customized to fit within the boundaries of a 42” plotter. Each map contains a technical summary of specifications and a colour bar that illustrates the range of each of the geophysical data.

The geophysical data is provided in a Geosoft GDB database. At Harte Gold’s request, a xyz archive of the same database in ASCII format can be provided.

5.1 Hardcopy Products


- 19 -



The contents of the database are described more fully in Appendix B. A copy of the GDB database is kept by BECI as a courtesy to Harte Gold but can be deleted at Harte Gold’s request. In addition to the GDB file database, copies of all geophysical grids are provided as GRD files (also in Geosoft format). The cell size used for gridding is nominally 1/4 of the flight line spacing. Map files in Geosoft MAP format are also provided as deliverables. Harte Gold can use a free viewer available from Geosoft Limited (www.geosoft.com) for viewing and plotting map files, but not for editing or changing them.


▪ Total Magnetic Intensity (TMI)

▪ Calculated First Vertical Magnetic Gradient (CVG)

▪ Off-Time “Z”-axis (channel [20], [30], [40])



▪ Geosoft database GDB of all collected data

6.0 Processing

Preliminary data processing is performed using BECI proprietary methods. This includes compensation, filtering and line leveling of the HTEM data. This also includes calculation of the vertical magnetic gradient, analytic signal, digital terrain model, bird height, and merging of the base station magnetic data (sampled at 1.0 sec) with the survey data (sampled at 0.1 sec).

All base maps are presented in the Datum and Projection defined in the Introduction of this report. All map coordinates refer to projected easting and northing in meters. All maps contain the actual flight paths as recorded during surveying and have been clipped to the survey polygon


6.1 Base Maps


- 20 -



with a 100m extension. The topographic vector data is obtained from Natural Resources Canada. Topographic shading is derived from 90 m resolution digital elevation model (DEM) data provided by the NASA Shuttle Radar Topography Mission (SRTM) and shaded at an inclination of 45o and declination of 45º.



The magnetic data (i.e. MAG from the airborne sensor and BMAG from the ground sensor) is collected without a lag time (i.e. synchronous with the HTEM data and UTC time), therefore a lag time correction is not applied. In areas where the MAG sensor has become unlocked (e.g. most often during turn-arounds), the total magnetic field values are replaced with a dummy value (“*”) and the data is later interpolated in Geosoft. The raw ASCII survey data files and BMAG ASCII data files are imported into BECI software and merged using UTC time, common to both files. A quality control check of the BMAG data is made on a day to day basis. Diurnal magnetic corrections are applied to the MAG data using the BMAG data. The base station data (i.e. BMAG) is linearly interpolated from a 1.0 sec sample rate to 0.1 sec to correspond to the flight data after the BMAG has been filtered with a 60 second filter. Once the MAG data has the diurnal field subtracted from it, a heading correction is applied and the resulting total magnetic intensity (TMI) is micro-leveled.

The EM data is processed using BECI proprietary software designed to compensate, filter and level both the off-time and on-time data.

6.2 Flight Path



6.5 EM Data Processing

- 21 -



The first step in processing is to determine the transmitter shut-off time and align the time gates to this position. The length of time that the transmitter is on is known as the on-time. The time gates are logarithmically spaced in the off-time and linearly spaced in the on-time. The second processing step is the calculation of the system background transient. This is done at a suitable flight height, nominally 1,000 feet or higher. During this time EM data is collected for a period of 50 seconds and averaged into a single background transient. This is subtracted from the transients recorded on line.

The third step is to assign the flight line numbers to each data point so that the flight can be separated into flight lines within Geosoft. Line-leveling and drift-correction are achieved on a flight by flight basis using the background transients, recorded at the start and end of each flight. Filtering the data involves a two-step process. Spikes are removed using an algorithm based on the Naudy non-linear filtering algorithm. This is followed by a 61-point Hanning filter that has the effect of smoothing the profiles over an equivalent distance of approximating twice the nominal flight height. Micro-leveling of the late time channels is also performed before the data file is written to disk. Conductor picks and Tau time constants are determined at this point as well. B-field processing of the time channels uses a fully integrated on-time in addition to the integrated off-time (i.e. full waveform). The early off-time channels are evaluated for possible primary field leakage (this involves a compensation filter based on linearly derived correlation between the late on-time and early off-time samples). The exact methodology is considered proprietary.

7.0 Interpretation

Exploration within the mineral claim 4281896, now known as the Eagle Showing, appears to have been limited to prospecting a gossan which contains abundant pyrite within metasediments. .

The EM response from the Eagle Showing is significant in two respects. First, the conductor trend is continuous across a strike length of approximately 700 m. Second, the EM response shows high conductance suggesting pyrrhotite is present along with the known pyrite. This latter observation is important because the original samples consisted of abundant pyrite within metasediments while the more recent samples contained sphalerite, chalcopyrite, pyrrhotite and abundant pyrite within a volcanic host.



- 22 -



The second survey over the Eagle Showing was flown at 50 m spaced flight lines in a line direction of 55o, at right angles to the conductor trend. Table 3 summarizes the conductor pick locations with comments on the intensity of the profiles. There were 17 profiles in all. An example of the high conductance nature of the mineralization is line 90 (L90) shown below in Figure 11. The vertical scale ranges from -200 to 1800 nT/s for both the off-time “z”-axis profiles (upper panel) and the on-time “z-axis” (lower). The peak response is approximately twice as high during the on-time, an indication of high conductance. Also from Figure 11 the late on-time has not decayed to even 50% of the early on-time peak, another indication of high conductance.

Figure 11 - Off-time and on-time "z"-axis profiles for L-90.

Figure 11 is defined as a very strong anomaly because the amplitude of both the off-time and

on-time is high (800 nT/s and 1,760 nT/s respectively), the ratio of the on-time to the on-time is

high and the late on-time remains relatively high compared to the early on-time. Figure 12 shows

the HTEM profiles for L-110 which is also ranked as a very strong anomaly. Figure 13 shows the

response from a moderate anomaly that is lower in amplitude and exhibits less on-time response.

Such anomalies will have less pyrrhotite and/or possibly less sulphide than the other responses

and may be located at greater depth.

- 23 -



Line Easting (NAD-83)

(m)

Northing (NAD-83)

(m) Comment

L20 - - No anomaly

L30 640537.60 5400941.00 Weak anomaly

L40 640570.60 5400902.00 Weak anomaly

L50 640617.20 5400879.00 Weak anomaly

L60 640617.70 5400813.00 Weak anomaly

L70 640637.40 5400769.00 Strong anomaly

L80 640674.80 5400732.00 Strong anomaly

L90 640689.50 5400682.00 Very strong anomaly

L100 640720.30 5400641.00 Moderate anomaly



L130 640816.90 5400525.00 Strong anomaly

L140 640869.60 5400504.00 Moderate anomaly

L150 640905.20 5400472.00 Weak anomaly

L160 - - No anomaly

L170 - - No anomaly

L180 - - No anomaly

Table 3 - HTEM conductor picks for the Eagle Showing.

- 24 -



Figure 12 - Off-time (upper) and on-time (lower) response for "z"-axis coil L-110.

Figure 13 - Off-time (upper) and on-time (lower) response for "z"-axis coil L-140.

- 25 -



8.0 Recommendations

1. A drillhole should be collared to test the response on L-90 where the HTEM profiles suggest

a greater amount of sulphide is present. This does not suggest the sulphide is economic, but it does suggest the presence of pyrrhotite and not just pyrite. The collar would be located at 640,745 mE and 5,400,720 mN with a -50o dip and 235o azimuth. The maximum length of hole required to fully intersect the target is 200 m or less. The collar has been pulled back 60 m to the northeast of the conductor trend. This is shown in Figure 14.

2. Ground check the proposed first drillhole location to ensure the drilling platform can be accurately placed.

3. Revisit the proposed drill collar location if the site is not suitable.

4. Drill the proposed hole.

5. Subsequent drillholes should be based on the amount of economic minerals (e.g. sphalerite, chalcopyrite, galena and precious metals such as silver and gold) encountered in the first drillhole

6. Borehole electromagnetic surveys (BHEM) are recommended for any holes drilled more than

400 m in length.

Respectively Submitted, Stephen Balch, P.Geo. Balch Exploration Consulting Inc. BECI

- 26 -



Figure 14 - Plan map showing conductor picks and proposed drillhole.

- 27 -




The following survey polygons were produced by BECI and approved by Harte Gold. The Projection is WGS84, UTM Zone 16 North.

Eagle 1 Survey Area

Eagle 2 Survey Area


641637

642238

639842

5400038

5401843

5401241

5399436


640100

640100

641700

5399760

5399760

5403140

5403140

- 28 -







LON Longitude data (degree – WGS84)

LAT Latitude data (degree – WGS84)

LINE Line number

TS Time Stamp

Zgps Altitude of helicopter from GPS

ANG Flight angle

DIR +1 for North or East heading, -1 for South or West heading

RADALT Radar Altimeter

GSMP GPS Time from base station



TIME GPS Time from GPS

TAUOFF Off-time Time Constant

TAUON On-time Time Constant

PICKOFF Off-time Anomaly Picks

PICKON On-time Anomaly Picks

PICKS Geophysicist Anomaly Picks

EMFID Em Fiducial

Zoff0 Off-time Z-axis channel 0





Zon5 On-time Z-axis channel 5

Zoff Off-time Z coil array [0..40]

Xoff Off-time X coil array [0..40]

Zon On-time Z coil array [0..40]

Xon On-time X coil array [0..40]

- 29 -




▪ The Calculated First Vertical Derivative (CVG) for Eagle is shown in Figure 13.

▪ The Total Magnetic Field Intensity (TMI) for Eagle is shown in Figure 14.

▪ The Early Off-Time (Zoff[20]) for Eagle 1 is shown in Figure 15.

▪ The Mid Off-Time (Zoff[30]) for Eagle 1 is shown in Figure 16.

▪ The Late Off-Time (Zoff[40]) for Eagle 1 is shown in Figure 17.

▪ The Early Off-Time (Zoff[20]) for Eagle 2 is shown in Figure 18.

▪ The Mid Off-Time (Zoff[30]) for Eagle 2 is shown in Figure 19.

▪ The Late Off-Time (Zoff[40]) for Eagle 2 is shown in Figure 20.

- 30 -



Figure 15 – Shaded image of the magnetic first vertical derivative (CVG) over the Eagle survey area.

- 31 -



Figure 16 – Shaded image of the Total Magnetic Intensity (TMI) over the Eagle survey area.

- 32 -



Figure 17 – Image of the Early Off-Time (Zoff[20]) over the Eagle 1 survey area.

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Figure 18 – Image of the Mid Off-Time (Zoff[30]) over the Eagle 1 survey area.

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Figure 19 – Image of the Late Off-Time (Zoff[40]) over the Eagle 1 survey area.

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Figure 20 – Image of the Early Off-Time (Zoff[20]) over the Eagle 2 survey area.

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Figure 21 - Image of the Mid Off-Time (Zoff[30]) over the Eagle 2 survey area.

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Figure 22 - Image of the Late Off-Time (Zoff[40]) over the Eagle 2 survey area.

Appendix E – Balch Exploration Consulting Inc. Report on a Helicopter-Borne Time Domain Electromagnetic and Magnetic Survey at White River, Ontario

- 1 -

HELICOPTER TIME DOMAIN EM SURVEY


REPORT ON A HELICOPTER-BORNE TIME DOMAIN ELECTROMAGNETIC SURVEY

AT WHITE RIVER, ONTARIO

Project Name:

White River, Ontario


Client:

Contractor:

Date:

December 11th, 2017


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Table of Contents

TABLE OF FIGURES............................................................................................................................................................... 3

1.0 INTRODUCTION ............................................................................................................................................................ 4

1.1 COMPANIES ....................................................................................................................................................................... 4 1.2 EXTENT OF SURVEY .......................................................................................................................................................... 4 1.3 DURATION OF SURVEY ...................................................................................................................................................... 4 1.4 DATUM & PROJECTION ..................................................................................................................................................... 4 1.5 SURVEY SYSTEM ............................................................................................................................................................... 4 1.6 THIS REPORT ..................................................................................................................................................................... 5 1.7 REPORT APPENDICES ........................................................................................................................................................ 5





4.0 EQUIPMENT ................................................................................................................................................................. 16

4.2 HTEM SYSTEM ................................................................................................................................................................ 16 4.3 MAGNETOMETER SYSTEM ............................................................................................................................................... 17 4.4 RADAR ALTIMETER .......................................................................................................................................................... 19 4.5 GPS NAVIGATION ............................................................................................................................................................ 19 4.6 DATA ACQUISITION ......................................................................................................................................................... 20

5.0 DELIVERABLES .......................................................................................................................................................... 20


6.0 PROCESSING ................................................................................................................................................................ 22

6.1 BASE MAPS ...................................................................................................................................................................... 22 6.2 FLIGHT PATH ................................................................................................................................................................... 22 6.3 TERRAIN CLEARANCE ...................................................................................................................................................... 22 6.4 MAGNETIC DATA PROCESSING ........................................................................................................................................ 22 6.5 EM DATA PROCESSING .................................................................................................................................................... 23

7.0 INTERPRETATION ......................................................................................................................................................... 24



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Table of Figures FIGURE 1 – REGIONAL LOCATION OF THE SURVEY AREAS. ................................................................................................................... 7 FIGURE 2 – WHITE RIVER SURVEY AREAS WITH MINERAL CLAIMS. ...................................................................................................... 8 FIGURE 3 – FLIGHT PATH OF THE NORTH BLOCK WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ........................................................... 9 FIGURE 4 - FLIGHT PATH OF THE EAST 1/2 BLOCKS WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ..................................................... 10 FIGURE 5 - FLIGHT PATH OF THE WEST A/B/C BLOCKS WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ............................................... 11 FIGURE 6 - FLIGHT PATH OF THE SOUTH BLOCK WITH AREA TOPOGRAPHY & MINERAL CLAIMS. ........................................................... 12 FIGURE 7 – THE SURVEY USED A EUROCOPTER AS350 D2 AS SHOWN ABOVE. ................................................................................... 16 FIGURE 8 – THE TRIUMPH AIRTEM TS-150 HTEM SYSTEM. ........................................................................................................ 17 FIGURE 9 – AEROCOMP MAGNETOMETER HOUSING AND SCINTREX CS-3 CESIUM TOTAL FIELD MAGNETOMETER. ..................... 18 FIGURE 10 - AGNAV NAVIGATION CONSOLE MOUNTED IN HELICOPTER. ..................................................................................... 19 FIGURE 11 - FREEFLIGHT RADAR ALTIMETER AND DIGITAL READOUT MODULE. ......................................................................... 19 FIGURE 12 - TRIUMPH TDS-2400 EM CONSOLE AND ACQUISITION SYSTEM. .............................................................................. 20 FIGURE 13 - CONDUCTOR PICKS FOR EAST 1 AND EAST 2 BLOCKS ON MAGNETICS. .................................................................... 25 FIGURE 14 - THE EAST BLOCK BEDROCK CONDUCTORS (ARROWS) APPEAR AT THE CONTACT WITH FOLDED GREENSTONE BELTS

TO THE SOUTH AND POSSIBLE IRON FORMATION OR ULTRAMAFIC UNIT TO THE NORTH. .................................................... 26 FIGURE 15 – IMAGE OF THE EARLY OFF-TIME (ZOFF[10]) OVER THE NORTH BLOCK. ....................................................................... 31 FIGURE 16 – IMAGE OF THE EARLY OFF-TIME (ZOFF[10]) OVER THE SOUTH BLOCK. ........................................................................ 32 FIGURE 17 – IMAGE OF THE EARLY OFF-TIME (ZOFF[10]) OVER THE WEST A/B/C BLOCKS. ............................................................ 33 FIGURE 18 – IMAGE OF THE EARLY OFF-TIME (ZOFF[10]) OVER THE EAST 1 / 2 BLOCKS. ................................................................. 34 FIGURE 19 – IMAGE OF THE MID OFF-TIME (ZOFF[20]) OVER THE EAST 1/2 BLOCKS. ..................................................................... 35


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1.0 Introduction

1.1 Companies

Balch Exploration Consulting Inc. (BECI) has flown a helicopter-borne time domain electromagnetic (HTEM) and magnetic (MAG) survey for Harte Gold Corporation (Harte), east of White River, Ontario, over several areas near the Sugar Zone gold deposit. The areas include part of the North Block, West 1, West 2, the South Block and a portion of the East Block.


The survey was flown in a series of blocks to maintain orthogonality of the flight lines to geologic strike. The total line kilometers (l-km) flown was 3,185.7. Block corners are listed in Appendix A.

The blocks were flown in two surveys. The first block (South) was flown from June to June using a Bell 407 from Wisk Air and consisted of 1,542 l-km. The second set of blocks (North, West 1, West 2, East 1, East 2) was flown from July 22nd to July 30th using the Expedition Helicopters AS350 D2 and consisted of 16 flights totaling 1,644 l-km. The total number of line-kilometers (l-km) using HTEM was 3,186.


The HTEM system used was the TS-150 manufactured by Triumph Instruments of Georgetown, Ontario and consisted of a main 8.54 m transmitter loop to energize the earth using a triangular current (the primary magnetic field). Three orthogonal receiver coils, a “z”-coil measuring the vertical magnetic field, an “x”-coil measuring the horizontal magnetic field in-line with the flight line direction and a “y”-coil measuring the horizontal magnetic field perpendicular to the flight line direction all recorded the secondary magnetic field (the earth response). Ancillary equipment consisted of a single sensor total field magnetometer (Scintrex CS-3 with proprietary counter), real time differential GPS system for position (Garmin), navigation system (AgNav) and radar altimeter (Freeflight).



1.5 Survey System

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This report describes the logistics behind the survey such as the area flown (Section 2.0), procedures and personnel (Section 3.0), equipment (Section 4.0), deliverable products (Section 5.0) and processing methods (Section 6.0). The report also includes a preliminary interpretation (Section 7.0) and recommendations (Section 8.0).



The property is located in Ontario, Canada. Figure 1 shows a regional location map for the survey area. The closest major center is White River located 26 km to the southwest. The approximate center of the survey block is:

• Main Block, latitude 48o 47’ 50” & longitude -85o 01’ 11” (Figure 2) Survey lines for the blocks are shown in Figure 3.

The blocks are accessible year-round by maintained gravel roads 100 and 200. Entrance to the roads are possible directly from Highway 17 at the north end of White River or from the east via Highway 631 that runs through blocks South and East.

The survey crew was based in White River, Ontario at the trailer park located on the southwest corner of Highway 17 and Highway 631. The helicopter, geophysical system, trailer and fuel truck were parked behind the White River Motel with permission from hotel management. Refueling of the helicopter came from a 2,000 litre tank towed by a pick-up truck. A fuel cache was also established in the field just west of the Main block within an area graded flat from a nearby gravel pit, located at mile marker 17 on roadway 100. Fuel was arranged in 200 litre sealed drums and tank. The empty drums were immediately removed from the area after use.

1.6 This Report


2.1 Location

2.2 Access

2.3 Base

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The survey area has moderate topography, having a sea level average of 420 meters and a range in elevation of 390-440 meters. The area has little outcrop due to the presence of overburden, predominantly glacial till composed of loose gravel, sand, boulders and clay. In some areas, the overburden thickness is less than one (1) meter but generally the thickness is several meters and even up to fifty (50) meters thick.

The geology around the Sugar Zone has been mapped previously and consists of felsic and mafic volcanic units, metasediments and ultramafics. The gold mineralization within the Sugar Zone is located within the volcanics and these are considered the favoured host rocks for potential new gold targets. There are also strongly magnetic tocks that could be ultramafic units and that could be prospective for nickel, copper and platinum group elements. Along the southern margin of the survey area the geologic units that host the Hemlo Gold Deposit are thought to continue to east through the south and east blocks. Additional greenstone belts have been mapped further to the east. The main purpose of the high resolution airborne magnetic survey is to help identify the location of the favorable greenstone belts.


2.4 Topography

2.5 Geology

2.6 Infrastructure

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Figure 1 – Regional location of the survey areas.

- 8 -



Figure 2 – White River survey areas with mineral claims.

- 9 -



Figure 3 – Flight path of the North Block with area topography & mineral claims.

- 10 -



Figure 4 - Flight path of the East 1/2 Blocks with area topography & mineral claims.

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Figure 5 - Flight path of the West A/B/C Blocks with area topography & mineral claims.

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Figure 6 - Flight path of the South Block with area topography & mineral claims.

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3.1 Line Spacing

The survey was flown as several contiguous blocks (7 in total) using the line direction and spacing listed below. The survey lines were trimmed 100 m outside of the blocks using the data from the Geosoft database.

Block Line Direction Line Spacing Number of l-km

West A Survey N0oE 100 m lines 160 l-km

West B Survey N0oE 100 m lines 144 l-km

West C Survey N0oE 100 m lines 269 l-km

North Survey N320oE 100 m lines 651 l-km

South Survey N0oE 100 m lines 1,542 l-km

East 1 Survey N0oE 100 m lines 298 l-km

East 2 Survey N0oE 100 m lines 122 l-km

Total 3,186 km



GPS navigation was provided using the AgNav system. GPS accuracy is ~1-5 m laterally within Canada for latitudes up to 60oN. The GPS antenna was mounted inside the helicopter on the front dash board on the passenger side. A light bar was located on the helicopter dash board in front of the pilot for on-line navigation.

3.2 Bird height

3.3 Speed

3.4 Navigation

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A second GPS antenna was mounted on the HTEM airframe. This location was used to generate the location of the HTEM profiles and MAG profile.



3.5 Altimeter


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3.7 Personnel


Mark Thorton Joel Breton

Pilot Helicopter pilot (Wisk Air) Helicopter pilot (Expedition)

Eric Robertson Mark St Amande

Aircraft Mechanic Bell 407 helicopter AS 350 D2 helicopter






Steve Balch Supervision Liaison with Harte. Responsible for the crew


George Flach Harte Vice President, Exploration

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4.0 Equipment

The helicopter used for most of the surveying was a Eurocopter AS350 D2 with registration C-GSSS, owned and operated by Expedition Helicopters Inc. based in Cochrane, Ontario.

Figure 7 – The survey used a Eurocopter AS350 D2 as shown above.

Installation of the electronics into the helicopter and the power connection occurred at Cochrane, Ontario by Dan LeBlanc and under the supervision of AME (Mark St Armand) who was provided with the Supplemental Type Certificate (STC) approved by Transport Canada. Assembly of the HTEM system took place south of White River, Ontario at the Moose Fishing Lodge located in Highway 17, mile marker 952. After the AME signed off on the installation there was a short test flight to check the configuration of the system. Production flights began immediately thereafter, and the crew transferred to a trailer park in White River, Ontario.

4.2 HTEM System

The system used was developed by Triumph Instruments (Triumph) and is known as AirTEMTM, a helicopter time domain electromagnetic (HTEM) system that is designed for mineral exploration, oil & gas exploration and geologic mapping. AirTEMTM is based on the concept of a concentric transmitter and receiver geometry originally developed by Scott Hogg and Moishe Granovsky at Aerodat Limited in the 1980s under direction of Wally Boyko.

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The AirTEMTM (TS-150) system features an 8.5 m diameter transmitter weighing approximately 500 Kg and producing up to 150,000 Am2 in transmitted power. The system records the full waveform and “X”, “Y” and “Z” coil measurements for improved interpretation of complex conductor responses. Measurements of the total magnetic field are also provided and optional radiometrics is available.

Figure 8 – The Triumph AirTEM TS-150 HTEM System.

Features

▪ Rigid concentric geometry

▪ Full waveform recording

▪ Software selectable base frequency ▪ Software selectable on-time period

▪ dB/dt and B-field profiles

▪ Total magnetic field

Advantages

▪ Excellent early off-time response ▪ Excellent performance in rugged terrain

▪ Direct drilling of targets is possible

▪ Improved nomogram correlation

▪ Interpretation/modeling software readily available

4.3 Magnetometer System

The airborne magnetometer system consisted of the bird housing, the sensor with control module (see Figure 7) and Larmour frequency counter. The airborne magnetometer data was collected at a rate of 10 Hz. The frequency output from the sensor was counted in the digital electronic section located approximately 2.0 m away from the sensor at the front of the bird. The digital

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magnetometer readout was transmitted in RSR 422 format along the tow cable to the data acquisition system in the helicopter. Specifications for the magnetometer sensor are given in Table 1.

Figure 9 – Aerocomp magnetometer housing and Scintrex CS-3 cesium total field magnetometer.

Manufacturer: Scintrex Limited, CS-3

Sensitivity: +/- 0.001 nT

Absolute accuracy: +/- 0.5 nT over operating range maximum

Sample rate: 10 Hz (0.1 sec)

Dynamic range: 30,000 to 90,000 nT, 5,000 nT/m gradient

Heading error: +/-0.15 nT maximum for all sensor orientations

Operating temperature: -32o C to +40o C normally

Tuning method: Dynamic re-starting at 30,000 nT

Volume of sensor: 70 mm3

Table 1 - Specifications for the Magnetometer Section


http://scintrexltd.com/wp-content/uploads/2017/03/CS-3-product.jpg

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4.4 Radar Altimeter



4.5 GPS Navigation

Navigation was provided by the AgNav Incorporated (AgNav-2 version) GPS navigation system for real-time locating while surveying. The AgNav unit was connected to a Tee-Jet GPS system receiver that uses the WAAS system – considered to be a standard in aircraft navigation and accurate throughout a large portion of Canada.

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Also used was a Garmin antenna located on the HTEM airframe. The Garmin antenna is capable of sub five-meter accuracy and was sampled at 10 Hz.


Data was collected through the main console (the TDS-2400, see Figure 10) which contained both the acquisition system and dc-dc power control module (booster circuit) for the transmitter coil. The main module also included timing control for the EM waveform, synchronization between the transmitter and receiver and recorded all ancillary information (GPS, MAG, EM, RAD ALT). This information was digitized and stored at a rate of 10 Hz. The resulting data string was transmitted to a laptop computer and stored on an internal hard-drive. Data files were copied onto a memory stick after each flight and two back-up copies were made, one on a private ftp site.

Figure 12 - Triumph TDS-2400 EM console and acquisition system.

5.0 Deliverables

Several deliverable products are generated from the survey including a set of hard-copy maps, a final report (this document), and a digital archive of the data with digital copies of map products. 5.1 Hardcopy Products

Hardcopy map products are provided at 1:20,000 scale and include a topographic back-drop. Each map contains a scale bar, north arrow, coordinate outlines (easting & northing), flight lines with line number and direction and geophysical data.

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The survey block consists of multiple map plates, customized to fit within the boundaries of a 42” plotter. Each map contains a technical summary of specifications and a colour bar that illustrates the range of each of the geophysical data.


The geophysical data is provided in a Geosoft GDB database. At Harte Gold’s request, a xyz archive of the same database in ASCII format can be provided. The contents of the database are described more fully in Appendix B. A copy of the GDB database is kept by BECI as a courtesy to Harte Gold but can be deleted at Harte Gold’s request. In addition to the GDB file database, copies of all geophysical grids are provided as GRD files (also in Geosoft format). The cell size used for gridding is nominally 1/4 of the flight line spacing. Map files in Geosoft MAP format are also provided as deliverables. Harte Gold can use a free viewer available from Geosoft Limited (www.geosoft.com) for viewing and plotting map files, but not for editing or changing them.



▪ Off-Time “Z”-axis (channel [10], [20])



▪ Geosoft database GDB of all collected data


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6.0 Processing

Preliminary data processing is performed using BECI proprietary methods. This includes compensation, filtering and line leveling of the HTEM data. This also includes calculation of the vertical magnetic gradient, analytic signal, digital terrain model, bird height, and merging of the base station magnetic data (sampled at 1.0 sec) with the survey data (sampled at 0.1 sec).

6.1 Base Maps

All base maps are presented in the Datum and Projection defined in the Introduction of this report. All map coordinates refer to projected easting and northing in meters. All maps contain the actual flight paths as recorded during surveying and have been clipped to the survey polygon with a 100m extension. The topographic vector data is obtained from Natural Resources Canada. Topographic shading is derived from 90 m resolution digital elevation model (DEM) data provided by the NASA Shuttle Radar Topography Mission (SRTM) and shaded at an inclination of 45o and declination of 45º.

6.2 Flight Path





The magnetic data (i.e. MAG from the airborne sensor and BMAG from the ground sensor) is collected without a lag time (i.e. synchronous with the HTEM data and UTC time), therefore a lag time correction is not applied. In areas where the MAG sensor has become unlocked (e.g. most often during turn-arounds), the total magnetic field values are replaced with a dummy value (“*”) and the data is later interpolated in Geosoft.

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The raw ASCII survey data files and BMAG ASCII data files are imported into BECI software and merged using UTC time, common to both files. A quality control check of the BMAG data is made on a day to day basis. Diurnal magnetic corrections are applied to the MAG data using the BMAG data. The base station data (i.e. BMAG) is linearly interpolated from a 1.0 sec sample rate to 0.1 sec to correspond to the flight data after the BMAG has been filtered with a 60 second filter. Once the MAG data has the diurnal field subtracted from it, a heading correction is applied and the resulting total magnetic intensity (TMI) is micro-leveled.

6.5 EM Data Processing

The EM data is processed using BECI proprietary software designed to compensate, filter and level both the off-time and on-time data. The first step in processing is to determine the transmitter shut-off time and align the time gates to this position. The length of time that the transmitter is on is known as the on-time. The time gates are logarithmically spaced in the off-time and linearly spaced in the on-time. The second processing step is the calculation of the system background transient. This is done at a suitable flight height, nominally 1,000 feet or higher. During this time EM data is collected for a period of 50 seconds and averaged into a single background transient. This is subtracted from the transients recorded on line.

The third step is to assign the flight line numbers to each data point so that the flight can be separated into flight lines within Geosoft. Line-leveling and drift-correction are achieved on a flight by flight basis using the background transients, recorded at the start and end of each flight. Filtering the data involves a two-step process. Spikes are removed using an algorithm based on the Naudy non-linear filtering algorithm. This is followed by a 61-point Hanning filter that has the effect of smoothing the profiles over an equivalent distance of approximating twice the nominal flight height. Micro-leveling of the late time channels is also performed before the data file is written to disk. Conductor picks and Tau time constants are determined at this point as well. B-field processing of the time channels uses a fully integrated on-time in addition to the integrated off-time (i.e. full waveform). The early off-time channels are evaluated for possible primary field leakage (this involves a compensation filter based on linearly derived correlation between the late on-time and early off-time samples). The exact methodology is considered proprietary.

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7.0 Interpretation

Exploration within the region was limited to airborne geophysical surveys and some prospecting and geological mapping around the time of the discovery of the Hemlo Gold Mine in the early 1980s. In 1991 the Sugar Zone was outlined over a strike length of 1.5 km by Hemlo Gold Mines Inc. during a prospecting and trenching program and subsequent IP survey. During 1993 and 1994 Hemlo Gold drilled several significant mineral intersections and continued with IP and ground MAG surveys. In 1998 the property was optioned to Corona Gold Corporation (51%) and Harte Gold Corporation (49%) with Corona as the Operator. An extensive drill program resulted in the first resource estimate in 1999. Drilling continued to 2004 where the Sugar Zone was further extended to 300 m vertical depth and a new resource estimate was completed. In 2008 Fugro flew a Dighem helicopter EM and MAG survey over most of the property. This survey led to several new showings of gold in volcanic rocks. In 2012 Geotech flew a VTEM survey over a portion of the property. In 2015 Geotech flew additional VTEM over the property and once the 2 surveys were merged, coverage was almost 100% over the existing mineral claims. Ground IP surveys continued in 2015, 2016 and 2017 expanding the previous coverage both north and south of the known Sugar Zone. Also in 2016, Crone Geophysics conducted an Escan resistivity and IP survey over the core of the Sugar Zone extending northward. In 2017 Harte Gold staked additional claims beyond the Sugar Zone in areas thought to contain volcanic and sedimentary rocks that are commonly found around the known mineralization with a recommendation to conduct high resolution airborne MAG with follow-up HTEM surveys over selective areas having potential to host VMS-style and Ni-Cu-PGE mineralization.

Most of the flight lines contain a significant overburden response but no bedrock conductors. For example, the South Block and North Block showed no bedrock responses. Bedrocks conductors are interpreted on the East 1 and East 2 blocks, however. As shown in Figure 9, there are three conductor trends on the East 1 survey block (A, B and C) and one conductor trend on the East 2 survey block (A).



- 25 -



Figure 13 - Conductor picks for East 1 and East 2 blocks on magnetics.

- 26 -



Figure 14 - The East Block bedrock conductors (arrows) appear at the contact with folded greenstone belts to the

south and possible iron formation or ultramafic unit to the north.

- 27 -



8.0 Recommendations

1. Develop drill targets for the East 1 A, B and C targets (assumed to be Au setting).

2. Develop drill target for East 2 A target (assumed to be Ni-Cu-PGE or Au).

3. In total, four drillholes would be required to test the EM conductors identified from this survey.

Respectively Submitted, Stephen Balch Balch Exploration Consulting Inc. BECI

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The following survey polygons were produced by BECI and approved by the Client. The Projection is WGS84, UTM Zone 16 North.

North


654940

657130

648180

5421100

5427780

5425170

5415910

East 1


673200

676150

676150

667700

667700

5400200

5401100

5401100

5397000

5397000

5400200

West A


633900

638300

638300

5411700

5415250

5415250

5411700

East 2


671300

674600

674600

5403300

5406900

5406900

5403300

South


657755

633700

633700

635355

635355

648200

659450

659450

5387365

5384165

5384165

5387365

5387365

5390565

5390565

5390565

5387365

West B


633100

637800

637800

5397600

5400600

5400600

5397600

West C


625000

629200

629200

5397000

5403250

5403250

5397000

- 29 -







LON Longitude data (degree – WGS84)

LAT Latitude data (degree – WGS84)

LINE Line number

TS Time Stamp

Zgps Altitude of helicopter from GPS

ANG Flight angle

DIR +1 for North or East heading, -1 for South or West heading

RADALT Radar Altimeter

GSMP GPS Time from base station



TIME GPS Time from GPS

TAUOFF Off-time Time Constant

TAUON On-time Time Constant

PICKOFF Off-time Anomaly Picks

PICKON On-time Anomaly Picks

PICKS Geophysicist Anomaly Picks

EMFID Em Fiducial






Zon5 On-time Z-axis channel 5

Zoff Off-time Z coil array [0..40]

Xoff Off-time X coil array [0..40]

Zon On-time Z coil array [0..40]

Xon On-time X coil array [0..40]

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▪ The Early Off-Time (Zoff[10]) for the North Block is shown in Figure 15.

▪ The Early Off-Time (Zoff[10]) for the South Block is shown in Figure 16.

▪ The Early Off-Time (Zoff[10]) for the West A/B/C Blocks is shown in Figure 17.

▪ The Early Off-Time (Zoff[10]) for the East 1/2 Blocks is shown in Figure 18.

▪ The Mid Off-Time (Zoff[20]) for the East 1/2 Blocks is shown in Figure 19.

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Figure 15 – Image of the Early Off-Time (Zoff[10]) over the North Block.

- 32 -



Figure 16 – Image of the Early Off-Time (Zoff[10]) over the South Block.

- 33 -



Figure 17 – Image of the Early Off-Time (Zoff[10]) over the West A/B/C Blocks.

- 34 -



Figure 18 – Image of the Early Off-Time (Zoff[10]) over the East 1 / 2 Blocks.

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Figure 19 – Image of the Mid Off-Time (Zoff[20]) over the East 1/2 Blocks.

Appendix F – Invoices

airborne geophysical surveys report - sugar zone property

Documents