1st Year Assessment Report

Mineral Exploration Licence # 017823M,

St. Patrick’s-Shoal Harbour, Central Newfoundland,

NTS 2E/12 Little Bay Island, Newfoundland.

By

Darrin Hicks

Work conducted: 2011

Report Submitted: September 2011

TABLE OF CONTENTS Page

Introduction............................................................................................................. 2 Location, Access and Topography......................................................................... 2 Regional Geological Setting.................................................................................... 5 Historic Exploration Work .................................................................................. 7 Prospecting Results …………………………..................................... 8 Conclusions and Recommendations ...................................................................... 10 References ............................................................................................................... 12 Table 1-Sample Co-ordinates…………………………………………………….. 10 Appendix “A” – Expenses Appendix “B”–Assay Certificates ii

LIST OF FIGURES Page

Figure 1: NTS map for the mineral Exploration license #017823M, NTS map sheet 2E/12

(Little Bay Island), Notre Dame Bay, north-central Newfoundland. . ……….……….. 3

Figure 2: Generalized geology map of the island of Newfoundland by Hayes (1987) showing

the tectonostratigraphic subdivisions of the Newfoundland Appalachian mountain belt (after

Williams, 1979). Note location of the licence #017823M within the western Dunnage Zone.

……………………………………………………………………………………………. 4

Figure 3: Claims Location map of license #017823M …………………………………. 6

Figure 4: Sample Location Map…………………………. ……………………………. 9

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Introduction The mineral exploration licence #017823M consists of 10 claims and is located within the western

portion of Notre Dame Bay, north-central coast of the island of Newfoundland. This licence property

includes the northeastern edge of the town of St. Patricks (Figure 3); and is located 8 km northeast of

the town of Springdale, and 3 km southwest of the town of Little Bay. The license #017823M area

lies within the 1:50,000 scale NTS topographic map sheet 2E/12 (Little Bay Island), (Figure 1). The

northeastern corner of the property is situated at UTM coordinates 5492500N and 575000E (Figure

3). Prospecting and rock sampling was carried out over 2 days on the license #017823M.

Approximately 60% of the property is located on the south side of Little Bay and is only accessible

by boat therefore only the northern property was prospected at this time. The purpose of this

exploration work was to conduct a reconnaissance examination of outcrop and identify any visual

mineralization in the property, collect representative samples for analysis, and provide a very

preliminary assessment of the economic potential of the property.

Location, Access and Topography

The south western portion of the exploration license area #017823M is intersected by the highway

Route 392 (Figure 3), which branches northward from highway Route 390 at a junction 3 km west of

the town of Springdale. The topography within the licence area #017823M consists of gently

inclined slopes extending southward from highway Route 392 to a well-exposed shoreline with

gravel and cobble beaches. Northward of this highway, the topography is somewhat rougher, with

steep slopes covered in intensely fractured/broken (felsenmeer-like) rock with periodic outcroppings

of more massive rock. Shrubs and small trees occur in clusters along the steepest slopes while a

thicker growth of mixed coniferous forest occurs towards the western portion of the property.

Outcrop exposure is moderate throughout most of the license #017823M area; with best exposures

occurring along the shoreline where vertical cliffs of outcrop ranging up to 10m in height in a few

localities.

2.

Figure 1: Location map of the 2E/12 – Little Bay Island – 1:50,000 NTS map sheet within the Notre

Dame Bay region, north-central Newfoundland.

3.

Figure 2: Generalized geology map of the island of Newfoundland by Hayes (1987) showing the

tectonostratigraphic subdivisions of the Newfoundland Appalachian mountain belt (after Williams,

1979). License #017823M is within the western Dunnage Zone.

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Regional Geological Setting

The mineral exploration licence#017823M area is underlain by Cambrian to Ordovician submarine

mafic to felsic volcanic rocks of the Lushs Bight Group, and lies within the Notre Dame Subzone of

the Dunnage tectonostratigraphic zone; (Figure 2). The Lush’s Bight Group defines an ophiolite

stratigraphy and may represent remnants of oceanic crust. The Lush’s Bight Group is structurally

bounded to the south and east by the Lobster Cove fault and to the northwest by the Green Bay fault.

The Lobster Cove fault juxtaposes the Lushs Bight Group against the Silurian Springdale Group and

the Ordovician Roberts Arm Group to the south. The Lushs Bight Group forms part of the Notre

Dame Bay nappe that forms the structurally highest nappe in the Notre Dame Subzone. The Lush’s

Bight Group has previously been interpreted to be oceanic basement to the Dunnage zone; however,

work in 1995 by Kean suggests that the Lushs Bight Group was formed in a suprasubduction zone.

The Lushs Bight Group can be divided into a number of fault-bounded blocks defined by the

intersection of north-northeast- and northeast-trending faults. The license # 017823M falls within

one of these major structural blocks and consists of a single major stratigraphic unit (i.e.: pillow

lavas). Those rocks outcropping within the licence # 017823M area consist of fine grained to

aphanitic, grey to dark green, strongly epidotized basaltic pillow lava with minor to extensive,

unseparated common diabase and gabbro dykes and sills with minor tuffaceous rocks and chloritic

schist as well as intercalated, bedded, mafic tuffs and massive flows.

5

Figure 3: Claims location map, for the mineral exploration license # 017823M; NTS map sheet 2E/12 (Little Bay Island), Notre Dame Bay, north-central Newfoundland. 6

Historic Exploration Work The Dunnage Zone is of prime importance to economic geologists as it plays host to an abundance

of significant VMS and epigenetic gold deposits and occurrences. The Lush’s Bight Group itself

contains approximately 100 volcanogenic base-metal sulphide occurrences, showings and prospects

.Two of these major sulphide and gold occurrences (i.e.: Little Bay Mine - #16 and Hearn Prospect-

#17) are situated just 3 km to the northeast and within the same lithological unit as underlies the

mineral exploration licence #017823M area . The Little Bay Mine operated from 1878 to 1894 and

1898 to 1901. An estimated 180,000 tonnes of 2.5 % to 10% Cu ore was produced from the ine.

Exploration of the property by various companies continued periodically from 1902 through to 1969

with the final period of production from 1961 – 1969 resulting in 2,571,977 tonnes grading 0.8% to

2% Cu and 195 kg Au. The mine closed in 1968 with reserve estimates of 267,000 tonnes averaging

1.02% Cu. The Little Bay deposits occur as massive, steeply plunging lenses and pods, as

disseminations, as veins and veinlets of pyrite and chalcopyrite, and as sulphide-bearing quartz veins

in northeast-trending and steeply dipping chloritic schist shear zones within mixed pillow basalts

and diabase dikes.

The Hearn prospect consists of Au + Cu, Zn, Pb-bearing quartz-pyrite veins, bands and

stringers within sheared and brecciated chloritic schist hosted by pillow lavas and diabase dikes

(Dean, 1977). This northeast striking and steeply dipping mineralized shear zone is traced

intermittently over 1200m (MODS, 002E/12/Au001). The exploration history is briefly summarized

as the discovery of gold-bearing quartz veins in 1932, followed by trenching and drilling in 1941 and

drilling and geophysics in 1963-64 with the best reported gold intersections of 0.045 and 0.07 oz/ton

Au over 0.15m and 0.52m, respectively (MODS, 002E/12/Au001).

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The area encompassed by the mineral exploration licence #017823M contains two known mineral

occurrences; the Shoal Harbour West pyrite occurrence (MODS, 002E/12/Pyr027) and the Shoal

Harbour pyrite occurrence (MODS, 002E/12/Pyr028). The Shoal Harbour West pyrite occurrence,

located at UTM coordinates 574340E / 5491290N, is classified as an indication and described as

small shaft dated from the late 1800’s with no additional information. The Shoal Harbour pyrite

occurrence, located at UTM coordinates 574700E / 5491420N, is classified as an indication and

described as small shaft dated from the late 1800’s with no additional information.

A 1997 exploration program by Canaco Mining Resources collected samples from the old workings

at Shoal Harbour West showing. The samples consisted of disseminated and stringer chalcopyrite in

a chlorite schist. Assays from rock samples were encouraging with elevated gold (43ppb), copper

(467ppm), and Zn (0.47%) values. The results of the soil survey were also encouraging with the

analysis for Cu revealed values greater than 50ppm, two of which were greater than 100(up to

maximum of 274ppmCu). A cluster of these anomalies, with coincidental Zn, was recorded

southwest of Shoal Harbour in the vicinity of Shoal Harbour and Shoal Harbour West pyrite

showings. Another significant value of 580ppmAs was obtained from samples which also assayed

anomalous copper and zinc near the Shoal Harbour pyrite showings.

Prospecting Results

Prospecting was conducted in 2011 over the area underlying the mineral exploration licence

#017823M (Figure 1). The outcrop throughout the area consists of very fine to fine grained, very

dark green to green-gray-black, variably chloritized and sheared mafic volcanics of the Lushs Bight

Group; including dominantly basaltic pillow lava with minor to extensive, unseparated diabase and

gabbro dykes/sills and minor intercalated tuffaceous rocks. The volcanic rocks are intensely sheared

and fractured throughout the property yielding rubble scree slopes along shoreline cliff exposures.

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FIGURE 4: SAMPLE LOCATION MAP.

A total of 9 rock samples were collected for assay from outcrop in the license #017823M area. The

sample number and UTM co-ordinates for each sample are presented in Table 1, while the sample

locations are indicated on Figure 4.

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SAMPLE ID NORTHING EASTING DESCRIPTION

SP178-11 5490986 0572538 OUTCROP

SP178A-11 5490986 0572538 OUTCROP

SP178B-11 5490986 0572538 OUTCROP

SP179-11 5490996 0572546 FLOAT

SP180-11 5491134 0572500 OUTCROP

SP181-11 5492329 0574492 OUTCROP

SP182-11 5492323 0574454 OUTCROP

SP182A-11 5492323 0574454 OUTCROP

SP182B-11 5492323 0574454 OUTCROP

Table.1; Sample Co-ordinates.

The Au fire assay + ICP analysis for the 9 samples are presented in Appendix A. The assay results of

the 9 mineralized grab samples collected from outcrops did not return any elevated values.

Conclusions and Recommendations

The licensed area prospected in 2011 was on the north side of Little Bay. This was due to ease of accessibility. The other portions of the license is located on the south side of Little bay which would require a boat. The areas prospected in 2011 did not return any encouraging results. Future prospecting should be focus on locating the Shoal Harbour and Shoal Harbour West showings on the south side of Little Bay. 10

References Dean, P.L. 1977: A report on the geology and metallogeny of the Notre Dame Bay area, to accompany metallogenic maps 12H/1, 8, 9 and 2E/3, 4, 5, 6, 7, 9, 10, 11 and 12. Newfoundland Department of Mines and Energy, Mineral Development Division, Report 77-10, 17 pages. Evans, D.T.W. 1996: Epigenetic gold occurrences, Eastern and Central Dunnage Zone, Newfoundland. Newfoundland and Labrador Department of Mines and Energy, Mineral Resources Report # 9, 110 pages.

Kean, B.F., Evans, D.T.W. and Jenner, G.A. 1995: Geology and Mineralization of the Lushs Bight Group. Newfoundland Department of Mines and Energy, Mineral Development Division, Report 95-2, 204 pages. Kohlsmith, R.L. 1989: First year assessment report on the geological and geochemical exploration for licence 3278 on claim blocks 5581-5582 and 15550 and licence 3284 on claim blocks 5583-5584 and 15594 in the Little Bay and Davis Pond areas, Newfoundland. Falconbridge Limited unpublished report, 53 pages. [GSB# NFLD/1770]

Williams, H., Colman-Sadd, S.P. and Swinden, H.S. 1988: Tectonic-stratigraphic subdivisions of central Newfoundland. In: Current Research, Part B. Geological Survey of Canada, Paper 88-1B, pages 91-98. Williams, H. 1979: Appalachian Orogen in Canada. Canadian Journal of Earth Sciences, Volume 16, pages 792-807. Dunsworth, S., 2003: First Year Prospecting and Sampling for Clauly Enterprises Incorporation. (002E/12/1337) Regular, M., 2004: Second Year Prospecting, Sampling and Geological Mapping for Clauly Enterprises Incorporation. (002E/12/1384)

Appendix “A” - Assessment Expenses Prospecting – 4 days @ $100.00/day.......................................................................... 400.00 Report writing – Darrin Hicks – 2 days @ $100.00/day............................................. 200.00 Research – Darrin Hicks – 3 days @ $100.00/day...................................................... 200.00 Vehicle -$60.00/day………………………………………………………………… 240.00 ATV@ $45.00/day...................................................................................................... 180.00 Fuel Expense............................................................................................................... 240.00 MEALS @ $25.00/day................................................................................................ 100.00 Assay expense ………………………………………………………………………. 328.49 Accommodations……………………………………………………………………… 105.00

Sub-Total $ 1993.49

Administration & overhead (consumables etc.) @ 15%.............................................. 299.02

Total $ 2292.51

Appendix “B”