12D09NEeiie 63.4381 LECOURS

010

REPORT ON THE PROPERTY OF

TUSCALOOSA OIL AND GAS INC.

HEMLO AREA

THUNDER BAY MINING DIVISION

ONTARIO

Y- i

Vancouver, B.C.

January 30, 1984

George Cavey, Consulting Geologist

Jacques Dumouchel, Project Geologist

OreQuest Consultants Ltd.

SUMMARY

Field exploration work for Tuscaloosa Oil and Gas Inc. was conducted on a

12 claim group gold prospect located 17 kilometers east of Marathon, Ontario,

within the Thunder Bay Mining Division.

Field work consisted of limited geological mapping, a reconnaissance I.P.

survey, an airborne VLF-HEM electromagnetic and magnetic survey and an

overburden drill program.

A critical facet of the exploration program was the determination of the

relationship between the property geology and its economic potential to the

Hemlo gold ore deposits, a recently discovered major gold camp situated just off

Highway 817 (Trans-Canada Highway), 30 kilometers east of Marathon, Ontario.

It is concluded based on field work done to date that the property is

geologically well situated and has reasonable exploration potential to host

another Hemlo-type gold ore deposit. However, due to thick accumulations of

glacial overburden traditional methods of exploration were not adequate,

therefore an overburden drill program was used.

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KENORA

ONTARIO

PROPERTY LOCATION

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C42D8I9NE0110 63.4381 LECOURS 010C

TABLE of CONTENTS

Summary

Table of Contents

List of Figures

List of Tables

List of Appendices

1.0 Introduction

2.0 Location and Access

3.0 Exploration Field Work

3.1 Claim Status

4.0 Geology

4.1 General Considerations

4.2 Regional Geology

5.0 Exploration Results

5.1 Property

5.2 History and Previous Work

5.3 Geology

5.4 Overburden Drilling

5.5 Geophysics

6.0 Conclusion and Recommendations

Statement of Qualifications

George Cavey

Jacques Dumouchel

Bibliography

Appendices

l

1

2

3

3

3

5

6

6

7

8

10

13

15

LIST of FIGURES

Figure l

Figure 2

Figure 3

Figure 4

Figure 5

Figure 6

Property Location following Summary

Regional Geology following page 5

Simple Mechanical Dispersion Train following page 9

Mechanical Dispersion Train following page 9 \ ^rtMt.

following page 9Mechanical Dispersion Train

Effect of Glacial Transport on

Gold particle on Size and Shape

Figure 7 Overburden Drill Program -

Compilation Map

Figure 8 Property Geology

following page 9

In Pocket

In Pocket

LIST of TABLES

Table l Drill Summary

LIST of APPENDICES

(a) Reconnaissance I.P. Report - M.P.H. Consultants

(b) Overburden Drill Hole Logs

(c) Overburden Management Laboratory Sample Logs

(d) Bonder Clegg, Overburden Samples Assay Results

1.0 INTRODUCTION

Field work on the 12 claim gold prospect of Tuscaloosa Oil and Gas Inc. was

designed to locate Hemlo-type gold ores of the type presently being evaluated by

Corona-Teck, Noranda and Long Lac, on their respective properties near Hemlo,

Ontario.

The key facet to this work was to gain a thorough understanding of the

geological setting of the property and the relationship to the Hemlo gold

deposits.

The primary objective of the 1983 field program was to carry out

geological, geophysical, and geochemical evaluations of the Tuscaloosa Oil and

Gas Inc. claim group as prelude to a further, more detailed exploration program

which would include diamond drilling.

2.0 LOCATION and ACCESS

The Tuscaloosa Oil and Gas Inc. claim group is centered approximately 15

kilometers west of Hemlo, Ontario, and 17 kilometers east of Marathon, Ontario.

The Marathon community serves as a center of communication and supply for the

area.

The Trans-Canada Highway (Ontario Highway ttl?) runs east-west through the

central portion of the property.

The CP Rail line barely transects the southern edge of the property.

- 2 -

One 115,000 volt Ontario Hydro transmission line runs generally parallel to

the highway lies within 500 metres of the northern claim boundary.

Water for exploration and development should be available from various

creeks and swamps on the property while water for potential mining and milling

operations could be supplied by the Black River which passes just north of the

property.

3.0 EXPLORATION FIELD WORK

Field work was carried out under the direct supervision of Jacques

Dumouchel, Project Geologist. Overall direction was provided by George Cavey,

Consulting Geologist, OreQuest Consultants Ltd., Vancouver.

Initial field work which established a 17.1 line mile grid was carried out

by D.B. Sutherland, Consulting Geologist under contract for Mid-Canada

Exploration Services.

In February and March of this year, approximately 17.1 line miles of

VLF-Electromagnetic and magnetic surveys were conducted over the property

utilizing this grid.

Work conducted between mid-July and mid-August consisted of prospecting and

claim post survey, followed by a reconnaissance I.P. survey and a regional

overburden drilling program. The I.P. survey was conducted by M.P.H.

Consultants while the overburden drilling was contracted to Heath and Sherwood

Drilling of Kirkland Lake, Ontario.

3 .

3.1 CLAIM STATUS

The Tuscaloosa Oil and Gas Inc. property consists of 12 contiguous,

unpatented mineral claims which encompass approximately 420 acres. The claims

are held in good standing and have a 1984 expiry date.

The claims are as follows:

Claim Number Total Expiry Date

TB 632697-632708 (14) October 15, 1984

4.0 GEOLOGY

4.1 GENERAL CONSIDERATIONS

Gold deposits of the Heralo gold camp are unique in their stratabound, sheet

like nature of mineralization. Gold and molybdenum are the primary economic

minerals with assay grades 0.19-0.36 oz/ton Au. and up to Q.08% Mo. Updated

reserves for the Hemlo camp total 75 million tons grading 0.28 oz/ton Au. To

date three major deposits have been discovered, the Corona-Teck, Noranda-Golden

Giant and the Long-Lac Mineral camps. The latter is reported to be the largest

with reserves in excess of 43 million tons of which 32.0 million tons grade .20

oz/ton.

The deposits occur within an Archean eugeosynclinal rock sequence with

mineralization confined to the contact between a felsic volcanic member and

clastic sedimentary rock member and are directly associated with local sericitic

alteration and disseminated pyritic mineralization. There are also reports of

other gold-bearing horizons in the immediate stratigraphy, but no proven

tonnages have yet been outlined.

- 4 -

Initial reports of gold in the Hemlo area dates back to 1945 when a

prospector discovered gold mineralization within a zone of sericitic-pyritic

alteration located approximately 1,000 metres west of the present International

Corona-Teck deposit. Assays from this zone ran up to 0.4 oz/ton Au.

The gold ores at Hemlo appear to exhibit both stratigraphic and structural

control. These deposits are thought to be actually part of a discontinuous

sheet of mineralization which has been traced for over 5,000 feet on surface.

Mineralization is known to extend from surface on the Long-Lac Minerals property

(Williams pit) to a depth of 3,000 feet on the Noranda-Golden Sceptre-Goliath

property to the north. The thickness of the mineralized zone varies

considerably from about 10 feet in some areas on the Teck-International Corona

property to an average of 70 feet on the Noranda-Golden Sceptre-Goliath

property.

The Corona-Teck east zone deposit is at a depth of approximately 400 metres

below surface and was discovered by deep surface diamond drilling based on

stratigraphic projections of the favorable volcanic-sedimentary contact horizon.

Geophysical techniques, particularly magnetic, electromagnetic and induced

polarization (I.P.) techniques have been tested over the ore horizons and to a

certain extent these techniques have proved useful.

There is usually a soil geochemical expression in gold and molybdenum

associated with the ores.

- 5 -

4.2 REGIONAL GEOLOGY

The general geology of the area surrounding the Tuscaloosa claims is shown

on Map 2439, "Heron Bay, Thunder Bay District", published in 1981, scale: one

inch to one half mile (O.G.S.) and Map 2452 "Hemlo, Thunder Bay District,

published in 1981; scale one inch to one half mile (O.G.S. Report 217).

Early Archean volcanic, sedimentary and plutonic rocks constitute bedrock

for most of the map area (Muir, 1982). Several occurrences of siltstone, wacke,

shale and chert units appear within and adjacent to the pyroclastics.

Major faults in the area seem to coincide with the Pic River valley and one

or more of the east-trending valleys parallel to Platyer Harbour (Muir, 1982).

The dominant rock types in the Heron Bay sequence appear to be a series of

intercalated volcanic and sedimentary formations, as follows:

(1) Mafic metavolcanic rocks mostly of calc-alkalic composition. Suchrocks consist of massive fine-grained medium to dark green flows and their associated pyroclastic units. Locally medium-grained flows or gabbros are also present;

(2) Intermediate to felsic metavolcanics, mainly pyroclastic in nature. Many of these rocks appear as medium green tuffaceous units with suggestion of layering and inhomogeneous textures;

(3) Metasedimentary units consisting of clastic and chemical depositionaltypes. Most the clastic metasediments in the Hemlo area are siltstone with minor occurrences of argillites, shales and laminated clastic wackes which may be derived primarily from volcanic source areas (Muir, 1982; Bell, unpublished report 1982). Chert-bearing banded iron formation and bedded chert carbonate-pyrite-bearing units are also locally present in pockets throughout the Hemlo-Heron Bay map area.

f

Carbonatite - Alkalic rock

Qronltic rock

Clastic itdimtntary , ftlsic volcanic rock ( unltt 2 A3)

Mafic volcanic i ehtmlcol stdlmtntt (until)

19 tO K

Sctl*

km.

1 ORE QUEST CONSULTANTS LTD

ONTARIO REGIONAL GEOLOGY

HEMLO AREA ONTARIO

- 6 -

Structurally the volcanic and sedimentary units have conformed, as Muir

believes, to outline the main granitic intrusive plutons which are the Gowan

Lake Pluton, the Heron Bay Pluton, the Pukaskwa Gneissic Complex and the Port

Coldwell Alkalic Complex. Muir (1982) also suggest that the granitic plutons in

the map area are probably syntectonic to late-tectonic whereas the Port Coldwell

complex is likely post-tectonic. Thus he suggests a synform structure between

the Gowan Lake and Heron Bay Plutons.

The appearance of well formed pillow tops, indicating a south structural

facing, approximately 1.5 kilometers south of the Trans Canada Highway on Heron

Bay Road supports Muir's theory. Muir, (1982) suggests that metamorphism is of

low grade, low temperature greenschist rank.

Swarms of Proterozoic mafic to felsic dykes and possible sill structures

intrude the plutons and their associated metavolcanic and metasedimentary rocks.

5.0 EXPLORATION RESULTS

5.1 PROPERTY

The overall positions of the claim block, which has been staked in

compliance of the Ontario Ministry of Mines Act, and the position of the grid,

have been accurately located with respect to regional geography.

The topography of the Tuscaloosa property is best summarized in the

qualifying report by David Bell. Mr. Bell states: "Personal mapping experience

and photogeological studies along the Hemlo volcanic belt indicate to the writer

- 7 -

that the topography is more rugged than in many parts of the Precambrian Shield,

though local relief nowhere exceeds about 100 feet. On the Tuscaloosa Oil and

Gas Inc. claim group, rock exposures are separated by marshy ravines and sandy

knolls. Only a few outcrops occur trending east-west. Ground examination and

aerial photographic studies of the Tuscaloosa Oil and Gas Inc. property show it

to be extensively and densely forested with black spruce, balsam fir and

scattered jack pine. Undergrowth consists of moose maple, tag alder, labrador

tea and sphagnum moss."

"Overburden consists of unconsolidated Pleistocene detritus, mainly boulder

clay, tills and varved clay deposits commonly exposed along the river and creek

bottoms. Depths of overburden are expected to be deep (50*4), regionally

expressed as a glacial depression filled with Pleistocene tills."

"The availability of water on the Tuscaloosa claim group is accessible from

the Black River."

5.2 HISTORY AND PREVIOUS WORK

A search of the assessment work filed in the Resident Geologist's Office,

Thunder Bay, indicated that previous exploration work has occurred on the

Tuscaloosa Oil and Gas Inc. property. During 1975 Noranda Mines Limited (Geco

Division) performed ground magnetometer and ground VLF electromagnetic

geophysical surveys as well as a geological mapping survey. The geophysical

surveys indicated coincident magnetic and electromagnetic conductors south of

Highway fi 17 and north of the C.P.R. on the southwestern third of the present day

property. The conductors wer explained by Noranda as faulting in the area and

- 8 -

also due to the presence of a magnetic amphibolite (mafic metavolcanic) unit or

a strongly magnetic dike found in the area (Graham and Weeks, November 1975, p.

3 and 2). The geology survey report indicated that no significant sulphide

mineralization was encountered (Graham and Weeks, August 1975, p. 3).

5.3 GEOLOGY

The northeastern portion of the property, immediately north of Highway 817

is occupied by a low-relief ridge trending west-southwest, east-northeast of

Early Precambrian (Archean) mafic metavolcanics intruded on the south by the

Early Precambrian (Archean) felsic Heron Bay Pluton end Early Precambrian

(Archean) late felsic dikes. The ridge extends as far west as Line 4400 West.

The southwestern portion of the property immediately south of Highway 817

and north of the C.P.R., is occupied by a ridge trending west-southwest,

east-northeast of Early Precambrian (Archean) mafic metavolcanics and lenses of

intermediate to felsic metavolcanics. The metavolcanics are intruded by Early

Precambrian (Archean) late felsic dikes. All Hthologies south Highway 817 are

intruded by a north-south trending Middle to Late Precambrian (Proterozoic)

mafic intrusive dike of diabase.

The mafic metavolcanics are generally dark green, fine grained, foliated,

amphibolitized rocks of basaltic composition. They range from being massive to

vesicular to sheared and schistose, the schistose portions commonly displaying a

rusty gossan and minor pyrite. Layers or thin laminations of sericite (altered

feldspathic material) and/or epidote are frequently present with the fine

^^ grained mafic metavolcanics as well as calcium carbonate. The very fine grained

- 9 -

amphibolites have a slaty structure. Massive medium to coarse grained flows are

also present, bearing amphibolide and feldspathic material, but are seldom

foliated. Amygdaloidal flows containing amygdules of plagioclase and sometimes

calcium carbonate, are also present. Tuff and lapilli-tuff of intermediate to

mafic composition is apparent, with one outcrop south of Highway 817 bearing a

graphitic schist. The overall foliation trends of the mafic metavolcanics vary

between 230* west-southwest to 270* east-west and dips are vertical to 36* north.

Felsic dikes of various composition and grain size intrude the mafic

metavolcanics and parallel their foliation.

The intermediate metavolcanics are observed as tuff, lapilli-tuff in

association with the mafic tuff and lapilli-tuff.

The felsic metavolcanics are observed as two narrow lenses and few

scattered outcrops south of Highway 817, of foliated flows and/or tuffs ranging

from a buff sandy colour to light green depending upon feldspathic content

versus epidotization. Epidote often occurs as narrow, apple green stringers.

Fine quartz eyes and granulated feldspar phenocrysts (tuffaceous) are observed.

Foliation trends and dips are the same as the north and south bounding mafic

metavolcanics.

The Heron Bay Pluton, observed only north of Highway 817 near the eastern

property boundary occurs as a hornblende-biotite granodiorite.

Late felsic dikes of various composition and grain size intrude the mafic

metavolcanics parallel to foliation trends. Compositionally the dikes are

- 10 -

generally massive feldspar porphyry containing plagioclase phenocrysts of medium

to coarse grain size. Where quartz eyes are present or the siliceous content is

dominant, the unit is referred to as a quartz-feldspar porphyry. North of

Highway #17 aplitic dike material is associated with occurrences of feldspar

porphyry.

A mafic medium grained equigranular diabase dike, trending north-south

intrudes all lithologies observed south of Highway 817. The diabase dike does

locally grade into a porphyritic variety near its south end. A rusty brown

crust is common on the weathered surface, the fresh surface being a

greenish-black.

An ENE trending lineament cross-cuts the property and is probably caused by

a major fault structure.

5.4 OVERBURDEN DRILLING

Due to extensive thick overburden cover on the property, conventional soil

geochemical surveys were not carried out as proposed. To obtain reliable data

from a geochemical survey a depth of 6 to 10 metres of overburden is considered

the limit.

The proposed overburden program was considered as the only viable

prospecting tool available to properly evaluate the potential of the property.

The aim of the program was to delineate any gold dispersion trains in glacial

till and to sample and identify the underlying bedrock. Because of the large

sampling medium the program was extended to four neighbouring properties and the

- 11 -

data treated together. Drill holes were located two hundred metres apart on an

northwest-southeast trending traverse lines. The traverse lines were oriented

at 90" to the ice direction and separated by 600 to 800 metre spacing.

Using a nodwell-mounted reverse circulation drill, the operation was

continuously monitored by a geologist responsible for logging the chip slurry

and sampling both the till and the bedrock.

Samples of till taken at a standard 1.5 metre intervals were sent to

Overburden Drilling Management of Ottawa for size fractioning and identification

of gold grains. Using parameters such as the size and texture of gold grain,

the relative amount of travelling from their point of origin is determined

{Figures 3 to 6).

An anomaly resulting from this first exploratory stage would require follow

up overburden drilling at a closer spacing followed by diamond drilling.

The fine fraction of till and bedrock samples were also analyzed chemically

by Bondar Clegg geochem lab in Ottawa for copper, zince, molybdenum and gold.

Two drill holes from a total of 24 holes were completed on Tuscaloosa claim

block. Both holes were abandoned in thich gravel/till beds without reaching

beadrock. Drilling indicated that most of the property is covered by at least

120 metres of overburden therefore exceeding the capacity of the drill rig. As

in the deeper holes depressions have been filled by thick accumulations of

gravel and washed till.

- 12 -

Only one gold grain was identified from a till sample taken from hole

EP-01. It appears to be of distal origin.

Geochemical analyses by Bondar Clegg of Ottawa of the 1/4 sample split

showed only one truly anomalous sample. Values greater than 3,000 ppb Au in

till samples are considered anomalous in this type of survey {Averill-Overburden

Drilling Management, personal communication). One sample RC-IT-10-13 was

conered anomalous, with a gold value exceeding 15,000 ppb. The sample was taken

at the bottom of hole IT-10 in gravel till. Unfortunately it occurs as a single

point anomaly as none of the samples taken above it were anomalous and the hole

was abandon without reaching bedrock.

Overburden Drilling Management concluded that, "Our study shows that

neither free gold nor auriferous pyrite is present in the retained 1/4 split of

the anomalous IC-10-13 concentrate. It is therefore reasoned that the strong

anomaly in the 3/4 split was produced by a single coarse gold grain. Anomalies

of this type are of no significance, even when they occur in tills. The anomaly

occurs in a gravel horizon at an unknown distance above bedrock. Follow-up is

not warranted". (S. Averhill, November, 1983)

- 13 -

Property Location

Tuscaloosa 44W 96S TU-01

TABLE l - DRILL SUMMARY

Depth to Bedrock/ (Top-Bottom) End of Hole Hole Description

TU-02 48W 948

Hole stopped at 123 metres - rod torque problems

Hole stopped at 116 metres - rod torque

96.5 meteres - clay/silt27 metres - gravel

84 metres - clay 32 metres - gravel

5.5 GEOPHYSICS

Results of the one line-mile reconnaissance I.P. survey conducted on the

property in July 1983 were inapplicable by the failure to penetrate the thick

conductive clay overlying the bedrock. The ground geophysics performed by

Noranda Mines Limited in 1975 suggests the presence of a coincident magnetic and

VLF (very low frequency) electromagnetic conductor south of Highway 817 on the

southwestern third of the present day property. This may be explained by the

present geology survey as the following:

(1) There exists a schistose shear within the mafic metavolcanics that has a significant distribution of rusty gossan and an exposure of graphite. The same zone is also calcium carbonatized. Thus the zone is a likely explanation for a VLF electromagnetic conductor;

(2) A lithological change occurs immediately south of the rusty, schistose zone of mafic metavolcanics, where a lens of felsic metavolcanics occurs. Such a lithological change could also explain Noranda's coincident magnetic and VLF electromagnetic anomalies (ie: magnetically, felsic volcanics have a near nonexistent magnetic mineral content while amphibolitized mafic metavolcanics, by comparison, have a relatively high magnetic mineral content).

A geophysical report by Sutherland dated May 1983, suggests the presence of

three significant VLF (very low frequency) electromagnetic anomalies, Zone A,B

14

and C.

Zone A, north of Highway fil? and extending from the eastern property

boundary west to area between Lines 4400 West and 4800 West, wraps around the

western nose of a topographic ridge of mafic metavolcanics which is surrounded

to the north, south and west by sand plains and swamps. Thus Zone A can be

explained as the results of a topographical interface between a ridge and

overburden.

Zones B and C, according to Sutherland, display good to moderate

electromagnetic conductivity but have no definite magnetic correlation. Prom

the present geology survey, Zone B appears to coincide with the larger lens of

felsic metavolcanics south of Highway 817 and can be explained as an anomaly

related to a lithological change. Zone C correlates well with the exposure of

graphitic schist located south of Highway #17 on Line 8000 West at approximately

124-tOO South.

A study of the magnetic data obtained from the combination of all ground

and airborne magnetic survey available for the Tuscaloosa Oil and Gas property

and the Hemlo gold belt has enabled us to correlate favourable stratigraphic

horizons across the property.

The property can be divided into two E-W trending magnetic domains. A high

magnetic domain occupying the southern part of the claim group correspond to the

outcropping mafic volcanogenic unit.

- 15 -

The low magnetic response delineated in the remaining portion of the

property reflects the presence of metasediments or possibly felsic volcanic

rocks.

6.0 CONCLUSIONS AND RECOMMENDATIONS

Exploration of the property has been hampered by the lack of outcrop

exposures and deep overburden cover. Conventional exploration methods such as

soil sampling were replaced by an overburden drill program. In a few cases the

overburden drill holes had to be abandoned without reaching bedrock because

depths exceeded the capacity of the drill rig.

Further overburden drilling is not recommended because of the lack of a

well developed basal till.

From our knowledge of the "Hemlo" stratigraphy it appears that the

favourable horizon occurs at the interface of the mafic volcanogenic-felsic

volcanic rock units and the overlying metasediments. These stratigraphic units

are easily identified using magnetic data and have been recognized on the

Tuscaloosa Oil and Gas property.

Furthermore a fault structure cross-cutting the property may serve as a

locus for fumarole centres within the sedimentary basin.

According to our exploration model exhalitive facies hosting the Hemlo gold

depsoits are most likely to occurs in small sub-basins or grabens with the

exhalitive centres probably located along the faulted boundaries.

- 16 -

The recommended program would require fence type diamond drilling along a

north-south section across the basin. This will provide valuable stratigraphic

information and hopefully verify the presence of altered felsic volcanic rock

and/or an exhalitive horizon. Lithogeochemical analyses of selective drill core

sections would help detect any traces of hydrothermal activity related to ore

forming process at particular stratigraphic intervals.

Given the logistical problem created by the depth of overburden in diamond

drilling it is recommended that a seismic or gravity survey be undertaken prior

to drilling to assist in the selection of drill sites. The seismic survey also

has the potential of identifying baritic facies associated with gold

mineralization as barite act as an attenuator of seismic signals.

It is also recommended that prospecting and rock sampling of the rusty

gossan, mafic metavolcanics {Zone C) on the southwestern portion of the property

be considered.

QUALIFICATIONS

I, George Cavey, of 3926 Valley Drive, Vancouver, British Columbia hereby

certify:

1. I am a graduate of the University of British Columbia (1976) and hold a BSc.

degree in geology.

2. I am presently employed as a consulting geologist with OreQuest Consultants

Ltd. of 404-595 Howe Street, Vancouver, British Columbia.

3. l have been employed in my profession by various mining companies for the

past nine years.

4. I am a Fellow of the Geological Association of Canada.

5. I am a member of the Canadian Institute of Mining and Metallurgy.

6. The information contained in this report was obtained during the completion

of the field work program conducted by OreQuest Consultants Ltd. in 1983.

7. Neither OreQuest Consultants Ltd. nor myself have direct or indirect

interest in the property described nor in the securities of Tuscaloosa Oil

and Gas Inc.

8. This report may be used by Tuscaloosa Oil and Gas Inc. for all corporate

purposes and including any public financing.

George Cavey Consulting Geologist

DATED at Vancouver, British Columbia, this 30th day of January, 1984.

QUALIFICATIONS

I, Jacques R. Dumouchel, of 1516 23rd Street N.W., Calgary, Alberta, hereby

certify:

1. I am a graduate of the University of Ottawa (1977) and hold a BSc. degree in

geology.

2. I am presently employed as a project geologist with OreQuest Consultants

Ltd. of 8404-595 Howe Street, Vancouver, British Columbia.

3. I have practised my profession for the past six years on a full time basis

since graduation.

4. I am a Professional Geologist, Registered in the Province of Alberta.

5. The information contained in this report was obtained during the 1983 work

program conducted by OreQuest Consultants.

6. Neither OreQuest Consultants Ltd. nor myself have direct or indirect

interest in the property described nor in the securities of Tuscaloosa Oil

and Gas Inc.

7. This report may be used by Tuscaloosa Oil and Gas Inc. for all corporate

purposes and including any public financing.

S Jacques R. Dumouchel

Geologist

BIBLIOGRAPHY

AVERILL, S.A.March 1978: Overburden Exploration and the New Glacial History of NorthernCanada.

AVERILL, S.A.November 16, 1983: OreQuest Limited Intercontinental Energy CorporationProperty, Hemlo Area, Ontario. Evaluation of the Sample lC-10-13 GoldAnomaly.

BELL, David R.JuLy 7, 1982: Report on the Property of Tuscaloosa Oil and Gas Inc., HemloArea, District of Thunder Bay, Ontario.

COVINE, A.C.1983: The Geology of Gold in Ontario, Ontario Geological SurveyPaper 110.

GRAHAM, S. and WEEKS, R.M.1975: Geophysical Report for Rous Lake No. 2 Claim groups; Noranda MinesLtd. (Geco Division); Assessment File Reports.

THE NORTHERN MINER PRESSApril 1983: The Chronological Story of the Hemlo gold camp as it appeared in The Northern Miner, 1947 to present, The Northern Miner Press. December 15, 1983 - News Release.

MUIR, T.L.1982: Geology of the Hemlo Area, District of Thunder Bay,Ontario. Geological Survey Report 217.

MUIR, T.L.1982: Geology of the Heron Bay Area, District of Thunder Bay,Ontario. Geological Survey Report 218.

QUARTERMAIN, R.A.1983: Preliminary Geological Description of the Corona Gold Deposit,Hemlo Area, Ontario, Paper by Teck Explorations Ltd.

SUTHERLAND, D.B.May 1983: Report on the Magnetic and VLF-EM Surveys Tuscaloosa Oil and Gas Inc.Property, Hemlo Area, District of Thunder Bay, Ontario.

APPENDIX A

Reconnaissance I.P. report - M.P.H. Consultants Ltd.

J f t \ \ \ ^

MPH42D09NEeite 63.4381 LECOURS 020

pM

it

REPORT ON

RECONNAISSANCE INDUCED POLARIZATION SURVEYS

FOR

TRIPLE CROWN RESOURCES LTD., YOUNGMAN OIL AND GAS LTD.,

AUTOCRAT RESOURCES LIMITED, INTERNATIONAL RHODES RESOURCES

LTD., LACO RESOURCES LTD., TUSCALOOSA OIL AND GAS LTD.,

INTERCONTINENTAL ENERGY CORP., DEVONIAN RESOURCES LTD.,

SOUTHERN UNION RESOURCES LTD., EL PASO ENERGY CORP.

HEMLO AREA

THUNDER BAY MINING DIVISION

ONTARIO

November, 1983

Vancouver, B.C.

J.L. LeBel, M.Se.MPH Consulting Limited

f l l \ 'S

MPH

1.O INTRODUCTION

This report documents the results of induced polarization

surveys conducted by MPH Consulting Limited on behalf of Triple

Crown Resources Ltd., Youngman Oil and Gas Limited, Autocrat

Resources Ltd./ International Rhodes Resources Ltd., Tuscaloosa

Oil and Gas Ltd., Laco Resources Ltd., Intercontinental Energy

Corp., Devonian Resources Ltd., Southern Union Resources Ltd.

and El Paso Energy Corp. on properties located in the Heralo

area, Thunder Bay Mining Division, Ontario.

The properties form a contiguous six mile by three mile block

centered roughly five miles west of the Village of Hemlo

(Figure 1).

The objectives of the surveys were to explore for sulphide

horizons similar to the horizon which hosts the gold deposits

under exploration and development on the International Corona

Resources, Lac Minerals and Goliath Mines/Golden Sceptre Mines

properties.

The surveys provided reconnaissance coverage of the properties

involved at more or less equispaced intervals and at the same

time traversed a number of conductors that were outlined by

VLF-EM surveys conducted on the properties.

PROPERTY LOCATION

ISOUTHE i UNION J-RE& LTQ-——

H

l. P SURVEYINGHEMLO PROJECT

LOCATION MAPMk V-llt j. L.

O.C.I Limitedo*t* Oetafctr. 1X3

MPH Consulting LJmK*d

MPH

A limited amount of detailed induced polarization coverage was

carried out on selected anomalies detected by the primary

coverage. The detailed surveys consisted of restricted

coverage on lines adjacent to the anomalous and/or additional

coverage using altered electrode array parameters.

Access for the surveys was provided by picket grid systems.

The Triple Crown Resources and Youngman Oil and Gas properties

were covered by separate unrelated grid systems and the

Autocrat Resources to El Paso Energy properties were covered by

a single extensive grid system.

The surveys were conducted during June, July and August, 1983.

4 ** l

2.0 EQUIPMENT AND SURVEY PROCEDURES

The surveys were conducted with a Huntec time domain induced

21 polarization sytem consisting of a Mark IV receiver and a

M| 2.5 kw transmitter/motor generator. Appendix I contains

detailed specifications of the instruments used.

iIn the time domain induced polarization method, current is

^B transmitted into the ground through a pair of electrodes

mm ( current dipole). At a pair of remote electrodes (potential

dipole) the primary voltage which is a function of subsurface

resistivity and secondary voltage, or the induced polarization

effect which is a measure of polarizeable mineral content, are

measured. The transmitted current wave form is a modified

square wave consisting of on-off-on-off cycles of equal

duration, in this case two seconds. The primary voltage is

measured during the on cycles and the induced polarization

effect is measured during the off cycle. The principles of

time domain induced polarization are illustrated in Figure 2.

The Huntec Mark IV receiver measures the induced polarization

parameter chargeability on 10 individual channels. Channel

width (Tp) and delay time (Td) between current 'shut off and

beginning of the measurement are adjustable to suit the

conditions of the survey. For this survey delay time and

channel width were 50 msec and 100 msec respectively. Data for

- 6 -MPH

several of the channels was recorded but it was found that the

10th channel provided the best quality data. Use of the 10th

channel effectively eliminates inductive electromagnetic

effects which may be present in the earlier channels.

The dipole-dipole electrode array with an electrode spacing (a)

of 200 feet expanded through four separations (n - 1-4) was

used for the survey. Initially, an electrode spacing of 100

feet was used to provide adequate resolution of the narrow,

less than 100 foot wide target expected. However, the

electrode spacing was increased to 200 feet when it was found

that the 100 foot electrode spacing did not provide adequate

penetration. The electrode spacing used for the detailed

surveys varied depending on the conditions encountered.

.c, _ c,I

vi/ no > \< o *

DIPOLE DIPOLE ARRAY

'i

* no x U o ** i ^ * i*

POLE DIPOLE ARRAY

Apporent Resistivity /oo *--j- , Gwhere G Is a geometrical factor dependant on survey array

Ton

Vo — —

T.on

T.on

MM *•••M*

•4 " -' ——— r

^T.off T. -off

s J"- on

s

s 1

T. of f

Decay Curve

sees

.————. Transmitter waveform— — signal " seen" at reclever

T.on * 2 sees. T.off i 2 sees.

Chargeability at time t M t AV

PRINCIPLE OF TIME'DOMAIN I.P. Figure 2

,MPH- 7 ~

3.0 PRESENTATION OF RESULTS

The results of the survey are displayed in pseudosection format

showing apparent resistivity in ohm-ra and chargeability in

msec. Contour are at semi-logrithmic intervals because of the

wide range, in particular in the resistivity results, in the

recorded data. Plotting of the data follows the usual

procedure, that is half way betwen the two extreme electrodes

at a depth determined by 45* diagonals drawn from the centre of

the dipoles as shown in Figure 3.

Plotting the data in this manner builds up a vertical section

of data points which represent increasing depth of exploration

with increasing n. The term "pseudosection" is used because

the plotted depth does not necessarily represent the actual

depth at which the measurement was made. The actual depth of

the measurement depends on the geoelectric properties of the

ground.

The pseudosections are plotted so that 1" * the electrode

spacing, therefore scales vary accordingly, as follows: a *

100 feet, 1:1200; a * 200 feet, 1:2400; a - 300 feet, 1:3600;

and a * 400 feet, 1:4800.

The results are also compiled on a plan map to show the spacial

distribution of the coverage affected and to allow correlation

with the results of other geotechnical work.

O

Tc,

-* t- no

fu3MINT POM EUCTHODEt At SHOWN

DIPOLE DIPOLE A RRAY

4-iSj).l——O

lT

-J BAWUMC

M.OTTIH4 MINT fQ* ELECTROOES f t-*. *-

Ca•9

T

T2

n-3

•no-

POIHT f O* EUCTROOES At CHOVTN

POLE DIPOLE ARRAY

lT

•ASCUNI

M.OTTUW POINT TOM ^l Ci AT B AND 7MOrtCTtVCLY

Figure 3

PLOTTING POINTS FOR VARIOUS ARRAYS

~ 9 ~

4.0 RESULTS AND DISCUSSION

4.1 Introduction

An interpretation of the results of the surveys is

displayed below the data on the pseudosections. The

extent and position of the cause of anomalies recorded are

illustrated by a 'bar 1 and identified numerically. The

interpretation also displays prominent resistivity

boundaries and contacts. Locations of the anomalies are

also shown on a plan compilation map (Nap 1) to illustrate

their spatial distribution and to facilitate correlation

with other geotechnical information.

Anomalies outlined are discussed on a property basis in

section 4.3 so that the information can be exerpted, if

necessary, for inclusion in geotechnical reports on

individual properties.

4.2 General Considerations

Noisy electrical conditions encountered during the course

of the survey account for the large number of negative

chargeabilities recorded. Collection of the channel 10

information effectively eliminated noise generated by

electromagnetic coupling expected in low resistivity

environments such as those encountered in the area. The

noise appeared to affect all of the receiver channels and

- 10 -

therefore was probably caused by atmospheric disturbances

and/or electrical interference from other induced polari

zation surveys that were in progress in the area at the

time of the work* The noise, however, does not appear to

have been detrimental to the quality of the survey since

anomalous conditions in the results are readily identi

fied. A number of other negative chargeabilities

particularly those associated with rapid spacial and

amplitude changes in apparent resistivity are theoretical

ly acceptable.

Large parts of the survey remained ineffective despite

increasing the electrode spacing from 100 feet to 200 feet

because of thick, moderately conductive overburden

conditions in the area. Areas where the survey was

ineffective are identified on the pseudosections and the

plan map of the survey. To improve the effectiveness of

the survey, the electrode spacing and/or the number of

separations recorded would have to be increased. However,

increasing the electrode spacing decreases the ability of

the survey to resolve narrow targets and employing larger

separations without increasing transmitter current output

may reduce the signal strength to levels where reliable

data cannot be acquired.

MPH

The calculated response expected at n - 4 for a dipole-

dipole electrode array with an electrode spacing of 300

feet over a geo-electrical section with the following

typical parameters:

overburden thickness: 300 feet

target width: 100 feet

overburden/bedrock resistivity contrast: 10

overburden IP effect: O msec

bedrock IP effect: 1 msec

target IP effect: 10 msec

consists of a background of 0.1 msec and an anomaly over

the target of 0.15 msec. Given the electrical inhomoge

neity normally encountered in field conditions, this weak

anomaly is probably not detectable.

VLF-EM conductors detected by previous surveys on the

properties are located on the pseudosections. None of

these conductors appear to be caused by features of

possible economic importance. Most of the conductors

occur at contacts between high and low resistivities which

reflect the contact between bedrock ridges and over

burden. Others occur in areas where large contrasts in

resistivities which probably reflect contacts between

stratigraphic units were recorded.

f r i \ -\.

,MPH- 12 -

Areas where high resistivities were recorded generally

coincide with topographic highs and reflect outcropping or

shallow subcropping bedrock. Variations in resistivity

within these highs are probably related to changes in

lithologies which may be assist geological mapping.

Identification of all of the resistivity units is beyond

the scope of this evaluation which is principally directed

toward anomaly identification and may in fact be wasteful

because of the reconnaissance nature of roost of the

survey.

The major high voltage power line which crosses the area

caused interference in the results. The interference

extended for one or two electrode spacings near the power

line. Other but less severe electrical interference was

experienced in the vicinity of Highway 17 and the CPR

railway track which cross the area.

Physiographic features such as the Black River and several

lakes in the area interrupted the continuity of the survey

lines and interfered with the survey coverage. It is

possible to survey uninterrupted across bodies of water in

the summer time but with attendant logistically difficulty

and time consumption. In areas where continuous coverage

across bodies of water is necessary, it may be prudent to

delay the work until winter months.

- 24 -

4.3.5 Tuscaloosa Oil and Gas Ltd.

Anomaly 1: Line 36+OOW, 103+OOS - 107+OOS

Anomaly 1 is a variable chargeability response caused by a

400 foot wide body associated with a zone of high resist

ivity. The resistivity high reflects near outcropping to

outcropping bedrock ridge which is flanked by thick low

resistivity overburden. The chargeability anomaly

probably reflects a sulphide rich facies within the

bedrock rather than an isolated sulphide body. Elsewhere

on the line, particularly north of 99+OOS the overburden

is too thick for effective penetration by the survey.

f / /i s \ -(MPH^^^

Anomaly 2: Line 68+OOW, 113+OOS - ?

Anomaly 2 is identical in character to anomaly 1. Evi

dence from regional geological mapping and a magnetic

survey conducted on the property indicates that it occurs

in basic volcanic rocks. The belt of favourable volco-

clastic sedimentary rocks north of the basic volcanics was

not effectively evaluated because overburden thickness

exceeds the depth of penetration of the survey conducted.

Anomaly 3: Line 88+OOE, 119+OOS - 135+OOS

Anomaly 3 is similar to anomalies 1 and 2 and therefore

does not constitute a favourable target with respect to

gold mineralization at this time. The results of the

- 25 -

MPH

resistivity survey conducted indicate that bedrock

outcrops or suboutcrops in the area so that surface

exploration methods such as prospecting and/or geochemical

surveys might be effective in evaluating the area. Target

in the area would be a massive sulphide situation rather

than volcano-clastic sedimentary rock hosted gold

situation like the Heralo gold deposits.

Anomaly 4: Line 88+OOE, 97+OOS - 99+OOS

Anomaly 4 reflects a questionable 3 reading anomaly

recorded in an area of low resistivity which reflects

thick overburden conditions. The anomaly does not appear

to be a bedrock response.

- 35 -MPH

5.0 CONCLUSIONS AND RECOMMENDATIONS

The induced polarization surveys detected a number of anomalies

on the properties. Most of the anomalies are attributed to

lithological responses rather than discrete sulphide occur

rences. A number of the anomalies are spurious, occurring in

areas where the survey was ineffective because of thick

overburden conditions.

Valid anomalies of possible economic interest occur on several

of the properties as listed below:

Property

Triple Crown Resources Ltd.

Laco Resources Limited

Devonian Resources Ltd.

Southern Union Resources Ltd.

Anomaly

2/5 and possibly 4

2 and 3

1 and 2

1, possibly others

Detailed surveys on some of these features was done at the time

of the initial coverage. Additional detailing where warranted

is recommended in section 4.3. Geological mapping, prospecting

and geochemical surveys in the vicinity of these anomalies are

recommended to assess their economic potential.

Thick overburden cover over large parts of the area reduced the

effectiveness of the survey. Parts of the area, particularly

( -l'*l those where encouragement has been received from other

geotechnical evidence, could be resurveyed using an electrode

l spacing larger than the 200 foot electrode spacing used for the

survey. It is cautioned, however, that a survey with a larger

electrode spacing, say 300 feet or 400 feet, may be ineffective

ft in resolving the narrow target expected in the area.

Respectfully submitted,

- f r i "v "\ -

MPH

J.L. LeBel, M.Se.MPH Consulting Limited

APPENDIX B

Overburden drill hole logs

APPENDIX D

Bondar Clegg, Overburden samples assay results

pepop.T ^ Z-

C63. os i LECOURS

030

(

REPORT ON THE PROPERTY

OF

TUSCALOOSA OIL 6 GAS INC,

HEMLO AREA

DISTRICT OF THUNDER BAY

ONTARIO

Timmins, Ontario July 7, 1982

David R. Bell, (B. Se.) Consulting Geologist

42De9NEeiie 63.4381 LECOURS 030C

INDEX

C

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

Introduction

Property Location and Access

Topography and Vegetation

History of Exploration

Regional Geology

Local Geology and Mineralization

Conclusions

Recommendations

Estimate of Costs

Certification of Qualifications

Bibliography

Pa

1

1-2

2-3

3-4

4-5

5

6

6

7-8

9

r

-1-

INTRODUCTION

The following report deals with a group of mineral

claims owned by Tuscaloosa Oil S Gas Inc. in the vicinity of Hemlo, Ontario, west of the gold occurrence of Corona Resources Ltd., presently being delineated by diamond drilling and readied for

a feasibility study in conjunction with Teck Exploration Ltd.. Existing evidence indicates that the subject property is underlain in part by a similar assemblage.of volcanic rocks found near the Corona Resources Ltd. occrrence. A previous geophysical survey

over the subjects property was carried out by Noranda Mines Ltd. in 1975, but since that time no further work was carried out over the Tuscaloosa property.

This report reviews the results of the earlier mineral

exploration recorded in the general Hemlo area, particularly on Corona's property for which the greatest amount of information is available and for which the writer was responsible for the supervision and direction for the recent exploration of said

^ property in the calender year of 1981.This report is based on an examination of the Tuscaloosa

Oil and Gas Inc. property and an intimate knowledge of Corona

Resources Ltd. gold occurrence. Numerous geological traverses in the fall of 1981 reviewing the Hemlo volcanic belt, supple

mented by a study of assessment work reports on file at the Ministry of Natural Resources in Thunder Bay and personal files

have been reviewed and studied for the Tuscaloosa Oil ft Gas Inc. report.

An initial two phase exploration program on the Tuscaloosa claim group is proposed herein to explore for zones

of gold and base metal mineralization and generally to assess the mineral potential of the property.

PROPERTY LOCATION AND ACCESS

s The property of Tuscaloosa Oil S Gas Inc. in the Hemlo area consists of twelve (12) contiguous, unpatented mining

Ott*w*-Bonn*eh*r* FcultSytttm

b KapwkMing Horn

OUTLINE OF

TUSCALOOSA OIL AND GAS LTD. MMOIOJC Rockt

PilMioic Rocki

Grenvitl* Province Rock* Ut* PrecambrianMiddl* Pr*c*mbfi*n.

i **** Southern frovino*

^ 'li CZ3 SuptcterProvince

PROPERTY LOCATION

O 100 200 300

Kilometres

ONTARIO

GEOLOGY

DAVID R. BELL GEOLOGICAL SERVICES INC

LOCATION MAP

LECEOURS TWP.

TUSCALOOSA OIL AND GAS INC.

District of Thunder Bay, Ontario

July 7, 1982 Plan No. TO-82-1

TUSCALOOSA OIL AND GAS LTD.

PROPERTY LOCATION

Seal* 1,50,000 Echetlel

DAVID R. BELL GEOLOGICAL SERVICES INC.

TOPOGRAPHICAL PLAN

LECOEURTUSCALOOSA OIL

TWP.

AND GAS INC.

District of Thunder Bay, OntarioJulv 7 . 1982 Plan No. TO-82-2

-2-

c claims located in the Thunder Bay Mining Division, District

of Thunder Bay, Ontario. The claims are illustrated and identified on Plan No. TO-82-3. These claims together with their

next assessment work due dates are listed below:

Claim Numbers Next Assessment Work Due Date

TB632697 to TB632708 (inclusive) October 15, 1982

This claim group is located in the west part of Lecours

township, and its geographic centre lies some 2 miles west of Pringle. Pringle is located along the Canadian Pacific Railway

along the north shore of Lake Superior almost equidistant from

Thunder Bay and Sault Ste. Marie. See Plan No. TO-82-1. Access

to the property is best gained by way of the Trans-Canada Highway ; No. 17 approximately 15 miles east of Marathon. See Plan No. TO-82-2.

cTOPOGRAPHY AND VEGETATION

Personal mapping experience and photogeological studies along the Hemlo volcanic belt indicate to the writer that the topography is generally flat with minor relief 80 feet to 100 feet south of the highway with low rolling hills north-east of the highway. On the Tuscaloosa Oil S Gas Inc. claim group, rock exposures are separated by marshy ravines and sandy knolls. Ground examination and aerial photographic studies of the Tuscaloosa Oil S Gas Inc. property show it to be extensively and densely forested with black spruce, balsam fir and scattered jack pine.

Spotty stands of poplar have been observed. Undergrowth consists of moose maple, tag alder, labrador tea and sphagnum moss.

Overburden consists of unconsolidated Pleistocene detritus, mainly boulder clay, tills, and varved clay deposits

commonly exposed along creeks. Depths of overburden are expected to be variable from s1iallow("5 '-15') near outcrop areas and possibly deep (SO'+J to the north and west portions of the claim group, !

-3-

r The availablity of water on the Tuscaloosa claimgroup is available from north-south running creeks which feed into the Balck River north of the highway and a north-south creek feeding into the Little Black River south of the highway.

HISTORY OF EXPLORATION

The writer has searched the assessment work files in the office of the Resident Geologist, Ontario Ministry of Natural Resources (O.M.N.R.) in Thunder Bay. In 1975, Noranda Mines Ltd. carried out geophysical electromagnetic and magnetometer surveys over the Tuscaloosa claim group. Two Radem V.L.F. conductors were located, one north of the highway on the east end of the property, and a second conductor of good strength south of the highway. This second conductor was followed for 2000 feet, however field examinations by Noranda"s crews interpreted this conductor to be caused by a fault. No further work was done on this property.

s Considering the relative ease of access to the property it is highly probable that at least some cursory examination may have been made, but no records exist to indicate such activity.

Gold was first discovered in the district in the summer of 1945 near Moose Lake some eight and a half (8.5) miles east, by T. Ollmann of Heron Bay on a group of patented claims (The Ollmann- Williams claims). Since that time, a number of companies including Lake Superior Mining Corporation, Teck Exploration Company Limited, Ardel Explorations Limited, Noranda Explorations Ltd. and most recently, Corona Resources Ltd., have conducted exploration programs, including diamond drilling, geophysics, geological mapping and geochemistry. By December 31, 1981, Corona Resources Ltd. had completed 175 drill holes and outlined two auriferous pyritic zones enclosed in an altered package of siliceous- sericitic-agglomeritic tuff. From January of 1982, Teck Corporation Ltd. optioned the Corona Resources Ltd. property and is currently carrying out a feasibility study to .place the Corona property \int.o

( production. Roughly one million (1,000,000) tons of drill-indicated

-4-

(gold-bearing material has been outlined with a grade better than

0.20 oz. Au. per ton.

In 1978, during his mapping of the Hemlo area for the

O.M.N.R., T.L. Muir (Open File Report 5280) collected a number

of grab samples of rusty pyroclastic material along Highway 17

roughly 2 miles west of the Corona Resources Ltd. property

and had them analyzed for a variety of metals. One sample assayed

0.32 oz. per ton Au., and 0.48 oz. per ton Ag..

REGIONAL GEOLOGY

C

(

The general geology of the Hemlo area is shown on

Map 2220, "Manitouwadge-Wawa Sheet" published in 1972, scale one

inch to two miles (O.M.N.R). In 1978 the area was mapped by

Muir and Lafleur and is shown on O.M.N.R Map 2452 scale l inch

to % mile, and described in O.M.N.R. Open File Report (O.F.R.)

5280.

The dominant rock types appear to be a series of

conformably intercalated volcanic formations, as follows:

1. Mafic metavolcanics consisting of flows and

their associated pyroclastic units.2. Intermediate to Felsic Metavolcanics,

mainly pyroclastic.

3. Metasedimentary units consisting of siltstones,

argillites, laminated clastic wackes, etc.,

mainly derived from volcanic source areas.

Medium to high grade metamorphism has sufficiently

recrystallized these formations and as a result reliable top

determinations are difficult to identify. In general the rock

formations strike east-west and dip steeply to the north. Four

identifiable intermediate to felsic intrusive plutons have been

named by Muir (et al), the Cedar Lake Pluton, Heron Bay Pluton,Gowan Lake Pluton, and the Pukaskwa Gneissic Complex. These v i i plutons have played a major part in the regional metamorphic!

-5-

finger printing of the volcanic suite as well as locally deforming and fracturing the volcanics with numerous more or less pronounced topographical lineaments criss-crossing the region in a variety of directions. One of these major lineaments has been called locally as the "Hemlo Fault" or "Lake Superior Shear Zone". The portion of the "Lake Superior Shear Zone" has been delineated by diamond drilling on the Corona Resources Ltd. property and has been identified as an altered siliceous, sericitized, tuffaceous agglomerate horizon containing auriferous pyrite zones, with minor amounts of fuchsite, tourmaline and molybdenite and trace amounts of sphalerite, chalcopyrite and native gold.

Feldspar porphyry and quartz porphyry sill-like masses intrude the volcanic and sedimentary belt locally and quartz diabase mafic intrusives cross-cut all units in a north-south pattern.

The aeromagnetic maps of the region define the general position and trend of the metasedimentary-volcanic belts and distinguish them from the felsic plutons.

LOCAL GEOLOGY AND MINERALIZATION

The property of Tuscaloosa Oil and Gas Inc., in the Hemlo area, i s underlain by a generally east-west trending sequence of mafic metavolcanic flows and pyroclastic units. Noranda Mines Ltd. indicated a narrow discontinuous lens of quartz-biotite schist south of the highway and parallel to their V.L.F. conductor. The formations are generally vertical to steeply dipping north. A diabase dyke runs north-south across the Tuscaloosa claim group. Because of the apucity of the outcrops north of the highway it is possible that felsic flows and related pyroclastics may be present.

The Heron Bay Felsic Pluton is in contact within the south east boundary of the claim group.

(

-6-

CONCLUSIONS

Recent exploration on the Corona Resources Ltd.

property in the Hemlo area has been successful in delineating

auriferous pyrite of a stratbound nature enclosed within volcaniclastic sediments. Similar gold bearing occurrences within this same unit have been sampled and assayed elsewhere in the Hemlo area by T.L. Muir (O.M.N.R.) which may be evidence of other zones of auriferous sulphide mineralization in the Hemlo area.

Rock formations underlying the Tuscaloosa Oil k Gas Inc.

property should be re-examined to look for gold bearing units similar to those mentioned above.

RECOMMENDATIONS

It is recommended on the basis of the successful technical work carried out by Corona Resources Ltd., that the

Hemlo property of Tuscaloose Oil k Gas Inc. in the District of

Thunder Bay, Ontario, be explored for gold deposits by means of the following techniques:

1. Establish a control grid of cut picket lines over the claim group from which geophysical and geological surveys

would be guided. Traverse lines to be cut on 400 foot intervals at right angles from a surveyed base-line running 085 0 E and survey stations established at 100 foot intervals.

2. Electromagnetic V.L.F. EM-16 survey and magnetometer survey over the control grid to re-establish previous conductors outlined by Noranda in 1975.

3. Detailed geological mapping of the claim group at a scale of l inch to 400 feet. Sampling of all outcrops indicating silicification, sulphide mineralization, and other alteration minerals (Fuchsite, tourmaline, sericite, etc.) for gold and other base metals.

A. Provisions for diamond drilling of promising geological structures and geophysical anomalies as outlined by the above methods.

s

-7-

ESTIMATE OF COSTS

The estimate of costs is based on a first phase exploration program consisting essentially of geophysical and geological

mapping and an allowance for a limited amount of sampling and

trenching. Contingent on favourable results from the above first phase, the second phase costs would consists essentially of diamond drilling, assaying and supervision.

Phase I S

1. Line cutting-15.00 line miles @ 5300.00Per mile (12 claims) 4,500.00

2. Geophysical surveys - 15.00 line miles@ 5250.00* per mile *(E.M. S Mag. surveys)

54,687.60 3,750.00

3. Geological mapping, 15.00 line miles @5300.00 per mile 4,500.00

4. Sampling and assaying of outcrops - 100samples @ 520.00 each 2,000.00

5. Supervision and interpretation of results drafting, plans and report 6 days @ 5400.00 per day 2,400.00

6. 1 57, Contingencies 2,572.50

Total 19,722.50

Say 20.000.00Phase II 0 v

1. Diamond drilling, 3,000 feet @ 525.00per foot 75,000.00

2. Engineering, Supervision and reports25 Days @ 5400.00 per day 10,000.00

3. Chemical Analysis 200 samples @ 520.00 ea. 4,000.00

4. 15X Contingencies 13,350.00

Total 102,350.00

CPhase II

-8-

Total carried forward 102,350.00

Total of Phase I and Phase II

Say

122,350.00

123,000.00

Respectfully submitted by,

Timmins, Ontario, July 7, 1982

David R. Bell, B. Se. Consulting Geologist.

(

-9-

C CERTIFICATION OF QUALIFICATIONS

(

I, David R. Bell, hereby certify:

1. That I am a consulting geologist employed byDavid R. Bell Geological Services Inc., Suite 14 251 Third Avenue, Timmins, Ontario.

2. That I am a graduate of Carleton University, Ottawa Ontario, with a degree Bachelor of Science (B.Se.) in geology, 1973.

3. That I have been practicing my profession as a geologist continuously since 1973.

4. That I am a Fellow of the Geological Association of Canada (1981), and a Member of the Canadian Institute of Mining and Metallurgy.

5. That I do not have, nor do I expect to receive, neither direct or indirect any interest in the property described in this report, nor in the securities of Tuscaloose Oil S Gas Inc..

6. That the report in based on an examination of the property area in the fall of 1981, and that a diligent effort has been made to obtain all records and technical data pertinent to the property.

Timmins, Ontario July 7, 1982

David R. Bell, (B. Se.) Consulting Geologist.

(BIBLIOGRAPHY

Bell, David R. May 5, 1981.

Phase I - Progress Report Corona Resources Limited, Hemlo Property District of Thunder Bay, Ontario.

(

Bell, David R. December 21, 1981

Greer, W.L.C. June 24, 1949,

Greer, W.L.C. May 8, 1973

Lyons, Edward M. July 6, 1977

Muir, T.L. 1978

Muir, T.L. 1980

Newbury, M. June 3, 1974

Page, T.W. Dec. 20, 1947

Page, T.W. April l, 1948

Page, T.W. March 8, 1950

Phase II - Progress Report Corona Resources Limited, Hemlo Property District of Thunder Bay, Ontario.

Memorandum on Property of Lake Superior Mining Corporation, Hemlo, Ontario.

Report on the property of Ardel Explorations Ltd., in Township 73, Near Hemlo in the Thunder Bay Mining Division, Ontario, unpublished report..

R. Newman Hemlo Gold Property West Group, Molson Lake Area Thunder Bay Mining Division, Ontario. R.E. Schaaf k Associates Inc., Geological, Geophysical and Geochemical Surveys, unpublished report.

Hemlo Area, District of Thunder Bay, Summary of Field Work, 1978, Ontario Geological Survey, Miscellaneous Paper 82 pp. 90-93.

Geology of the Hemlo Area, District of Thunder Bay, Ontario, Ontario Geological Survey O.F.R. 5280.

Report on the Property of Ardel Explorations Ltd., Hemlo, Ontario, unpublished report.

A Report on the Ollmann-Williams Group of Claims, Hemlo, Ontario.

A report on the property of Lake Superior Mining Corporation Ltd., Hemlo Area, Ontario, unpublished report.

Outline of Diamond Drilling Results on Hemlo, Ontario Property.

BIBLIOGRAPHY

C Page, T.W. August 21, 1950

Page, T.W. December 29, 1950

Page, T.W. June 25, 1951.

Page, T.W. undated

A report on the property of Lake Superior Mining Corporation Limited, Hemlo Area, Ontario, unpublished report.

A Geological Report on the Struthers Group of Mining Claims, Hemlo Area, Ontario.

A report on the property of Lake Superior Mining Corporation Limited, Hemlo, Ontario, unpublished report

Interim Report on the propertyof Lake Superior Mining CorporationLimited, Hemlo, Ontario.

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42D39NE*!16 63.4381 LECOURS

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