Assessment Report for Mineral Claim Blocks in the Fort ... · DBCI continued aboriginal liaison to...

De Beers Canada Inc. - Exploration Division

Assessment Report for Mineral Claim Blocks in the Fort Hope Area

VOLUME 1

Submitted to: Provincial Recording Office

Ministry of Northern Development and M 933 Ramsey Lake Road e~ 31 83 7

2. 31 837 Sud bury, Ontario

P3 D 6B5

Holder: De Beers Canada Inc. - Exploration Division

One William Morgan Drive Toronto, Ontario

M4H lN6

Author: Bruce McMonnies

Assessment Date: April 04, 2006 Document Date : March 23, 2006

Distribution: Provincial Recording Office (2) Copie~ : Toronto

Classification Code: EO 3 0

REC-r=fVED I ~:'~R 3 0 2006

GEOSCIENCE AS§ESSMENTI '--__ ,JFFICS-- .~-- '

Project Number: 1053

ABSTRACT

De Beers Canada Inc. (DBCI) has ownership to 22 mineral claims (Table 1) in the vicinity of the Fort Hope Project, located approximately 120km east of Pickle Lake, Ontario. Exploration work was conducted on these 22 claims during the period of 2003 to 2006 to determine the possibility of any existing kimberlites. Work done included a full interpretation of the Operation Treasure Hunt geophysical survey release and a 2006 high resolution helicopter magnetic/electromagnetic detailed airborne geophysics survey over the individual claim blocks. A total expenditure of S 189,732.60 dollars spent for this follow-up geophysical programme is used towards maintaining these 22 mineral claims in good standing. The follOWing assessment report is submitted in accordance to the Ontario Mining Act to fulfil the first assessment work requirements.

Table of Contents

Abstract List of figures ........................................................... III

List of tables ........................................................... iv List of tables ........................................................... iv 1 .0 Introduction ....................................................... 1 2.0 Location and access ................................................. 1 3 .0 Physiography and vegetation .......................................... 2 4.0 Geology ........................................................... 2 4. 1 Bedrock geology .................................................... 2 4.2 Paleozoic geology ................................................... 3 4.3 Quaternary geology ................................................. 4 5.0 Summary of Exploration Programme .................................... 5 5. 1 Helicopter-borne geophysical survey .................................... 6

5. 1 . 1 Survey Specifications ......................................... 6 5. 1 .2 Interpretation ............................................... 6

6 .0 Results ............................................................ 7 6. 1 Geophysical survey results ............................................ 7 7 .0 Conclusion ......................................................... 7 8.0 References ......................................................... 8 9.0 Statement of qualifications ........................................... 9 10.0 Figures ....................................................... 10 11 .0 Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 Appendix 1 ................................................•......... " 1 6

ii

LIST OF FIGURES

Figure 1 - Location Map of Mineral Claim Blocks. . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11

iii

LIST OF TABLES

Table 1 - list of mineral claims in the Fort Hope area. . . . . . . . . . . . . . . . . . . . . . . .. 14 Table 2 - Summary of type of work conducted on mineral claims in the Fort Hope

project area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 15

iv

1.0 INTRODUCTION

Fort Hope geophysical data was released in February, 2003 as part of Operation Treasure Hunt. 37 claim blocks were staked covering 41 anomalies in February, 2003 by De Beers Canada Inc. (DBCI)

The strategy to use government data from Operation Treaure Hunt (OTH) which met our in house standards substantially reduce the costs of acquisition and also reduced the time of the project. The strategy to be first in line to collect the published maps and then review the digital data quickly enabled De Beers Canada Inc. to claim high interest anomalies. From this OTH survey, a number of anomalies were deemed as possible kimberlites and mineral claims were staked surrounding these targets.

In year 2005, De Beers Canada Inc. (DBCI) completely reviewed the reconnaissance geophysical data from OTH, the selection process of anomalies, the grading and prioritization of anomalies with all other available information including regional bedrock geology, the surficial geology, DBCI regional and historical heavy mineral sampling results and the digital terrain model. DBCI continued aboriginal liaison to gain access to the project area. Access was granted during December 2005. A contract was signed with Aeroquest Surveys limited (AQL) to conduct a high resolution helicopter borne magnetic/electromagnetic survey over the claims on January 06, 2006. The survey commenced on January 28 and was halted on February 02, 2006. The permission from the Fort Hope community was not signed resulting in the claims around the Fort Hope community not to be flown. Exclusion has been granted over these claims. This report summarises work conducted on 22 mineral claims in the area around Marten Falls and is submitted in order to fulfil the assessment work requirements towards these claims.

2.0 LOCATION AND ACCESS

The 22 mineral claims are located around Marten Falls, Ontario, at approximately 120 km west of Pickle Lake (Figure 1). These claims are located within the boundaries of NTS Sheets 5 3A/05, 5 3A/06, 5 3AI 11 , and 5 3AI 1 2. Additionally, these claims fall mostly within trapline areas of Ogoki (Marten Falls) community.

Access to the mineral claims by air is via Nakina located approximately 180km to the south of the community. The geophysical survey was undertaken by AQL and they moblized in through Nakina and were based in the Ogoki community.

3.0 PHYSIOGRAPHY AND VEGETATION

The 22 claims are situated in relatively flat terrain covered with peat bogs, muskeg swamps, and intermingled with gently sloping hills formed either by glacial landforms such as eskers, or granitic outcrops. Numerous lakes and ponds cover the region and are connected by streams and rivers.

Boreal forests consisting of lowland conifers cover the Fort Hope project area. Peat moss, organic debris, black spruce trees and tamaracks dominate in the low-lying peat bogs and muskeg swamps, while jack pines, birch trees, and caribou moss are more prevalent in the high relief areas.

4.0 GEOLOGY

4. 1 Bed rock geology

The Fort Hope region is underlain by the Superior Craton which records the closure of ocean basins and trapped island arcs c. 2.7 - 3.0 Ga. The Superior Craton is comprised of smaller terranes which young to the south and reflect accretion of landmasses on the southern margin of the Superior Craton. The Fort Hope region is underlain by the Uchi Subprovince. This subprovince is a long, ribbon-like granite greenstone belt composed of remnants of ocean floors and volcanoes that formed island arcs similar to Japan and Indonesia.

The Uchi Subprovince is a semi-continuous east-west belt (trending 080°) of metavolcanic and metasedimentary rocks. It is exposed in Ontario for 600 km except in the east where it is overlain by Phanerozoic rocks of the Moose River Basin. The Uchi Subprovince extends west into eastern Manitoba for anther 90 km at which point it becomes overlain by Phanerozoic rocks of the Williston Basin.

A major volcanic-sedimentary belt, the Miminiska-Fort Hope belt is part of the Uchi Subprovince in the Fort Hope region. This belt is intruded by minor amounts of metagabbroic rocks and is bordered by composite granite batholiths (Thurston and Carter, 1970). The Miminiska-Fort Hope belt consists of submarine mafic to intermediate metavolcanics with minor felsic pyroclastic and extrusive rocks and wedges of metasediments (Thurston and Carter, 1970). Interconnecting volcanic belts in the Uchi Subprovince encompass a breadth of up to 80 km.

A crust-thickening period, involving thrust stacking and folding of volcanic and sedimentary assemblages occurred during the interval 2.73-2.70 Ga. The post 2.84 Ga history of the Uchi Subprovince is best viewed as the record of an' evolving Andean type continental margin with a long history of crustal growth by continental arc magmatism. This stage was terminated by a continental collision with a superterrane to the south at about 2.7 Ga (the

2

Uchian phase of the Kenoran orogeny). Accompanying and following the most penetrative phase of this collision a thermal event produced sizeable volumes of plutonic magma that formed numerous plutons within the subprovince (Stott and Corfu. 1991).

The Uchi Subprovince includes prolific gold producing camps such as Red Lake and Pickle Lake. Volcanogenic massive sulphides have been mined and are the target of active exploration in eastern Uchi Subprovince.

Greenstone belts and metavolcanic rocks in the Fort Hope area will make geophysical interpretation challenging. Samples taken in the area will consist of very dark background mineralogy due to the presence of mafic volcanics in the greenstone belts and will contain numerous unrelated spinels and other metamorphic minerals.

4.2 Paleozoic geology

There is little Paleozoic cover in the Fort Hope region except in the easternmost portion of the project area. Little outcrop occurs in areas underlain by Paleozoic strata as the area tends to be poorly drained and is characterized by bog and muskeg.

In the west. the project area is underlain by the Cape Henrietta Maria Arch which is a basement feature that was uplifted during the Silurian when the Taconic and Acadian orogenies affected the east and southeastern margins of Laurentia. These orogenies record the formation of Pangea with the collision of Laurentia and Baltica followed by the collision of laurentia and Gondwana. The uplift of basement arches. including the Cape Henrietta Maria. acted to form discrete sedimentary basins which became repositories for sediments eroding off of newly formed mountains. During periods of tectonic quiescence, shallow sea conditions amenable to the formation of large reef complexes persisted.

The Fort Hope region is located on the edge of the Moose River Basin where only Upper Ordovician units are preserved. These consist of the Bad Cache Rapids Group. Churchill River Group and Red Head Rapids Formation. Paleozoic rocks in the Fort Hope region lie unconformably on the Precambrian basement and dip gently towards the centre of the Moose River Basin.

The Bad Cache Rapids Group records initial marine transgression over the Superior Craton during Upper Ordovician time and is characterized by sandstone. siltstone and limestone deposited in a tidal environment. The overlying Churchill River Group and Red Head Rapids Formation are characterized by limestones and dolostones which indicate shoaling conditions up-section and possibly associated with the bulging of the Fraserdale Arch (Norris. 1993; Sanford and Grant, 1990; Sanford et aI., 1968). The

3

thickness of Paleozoic rocks in the Fort Hope region is likely less than forty metres (from Mcllraith and Stott, 2005).

4.3 Quaternary geology

The Quaternary geology of the Fort Hope area is complicated by multiple glaCial advances throughout Wisconsin time. The Quaternary stratigraphic record of the Hudson Bay Lowlands is known to consist of three or more older Illinoian tills, Sangamonian interglacial deposits and several younger Wisconsin tills. Till units are separated by sand, silt and gravel beds of uncertain age and a postglacial lacustrine and marine sequence caps much of the Quaternary succession.

In his study of the Hudson Bay Lowlands, Thorleifson (1989) recognized up to five (Wisconsin) till units and ice flow trends based on lithofacies sequences, till composition, bedrock striations and pebble fabric analyses.

The oldest and most rarely exposed till (Till E) is the product of southerly ice flow. The next till in the sequence (Tilt D), is enriched in Paleozoic erratics from the east and yields a northwest ice flow vector. Till C yields sparse pebble fabric data and boulder pavement striae indicating westerly ice flow. The most extensive till in the area (Till B) is associated with southwesterly ice flow indicated by striated boulder pavements and extensive sculpted landforms. The uppermost till (Till A) is associated with late stage readvancement of the ice sheet and variable ice flow directions. In the project area, ice flow indicators show a pattern of converging but generally southerly ice flow, termed the Cochrane advance (c. 8200 years BP (Prest et aI., 1968). This latest ice flow direction is evident in sculpted landforms and lake orientations. Much of the glacial deposits in the area have undergone subsequent redistribution by alluvial action.

The eastern region of the project area is poorly drained and underlain by organic deposits forming bogs and fens. Where Quaternary sediments are exposed in the project area, they are characterized by belt of fine-grained tilt in the central portion of the project area and sandier till to the west. The fine-grained till has a predominantly Silty matrix, low clast content and high matrix carbonate. This till is associated with the latest southerly ice flow (Tilt A). Streamlined landforms within this till are generally oriented to the south and south-southwest. Sandy till, juxtaposed against and likely preserved underneath the fine-grained till, has a predominantly sandy matrix, higher clast content and low matrix carbonate. Streamlined landforms associated with this till (Till B) trend southwest. Ice contact glaCiofluvial deposits become increaSingly abundant in the western region of the project area and indicate a

4

southwesterly ice flow (Barnett et aI., 1991a; Barnett et aI., 1991b; Ontario Geological Survey, 2000).

Glaciolacustrine sediments also become more prevalent in the western region of the project area. These sediments tend to be coarse-grained sands and gravels recording nearshore and beach environments; modification of preexisting features such as moraines and drumlins by wave action is common where these sediments are found. The Nakina end moraine, present beyond the western margin of the project area, demarcates the terminal position of a late readvancement of the Laurentide Ice Sheet. As a result of this readvancement, glacial Lake Nakina formed northeast of present-day Lake Nipigon. Ice persisted long enough at the Nakina moraine to prevent waters of glacial lakes Barlow-Ojibway and Agassiz from coalescing. Ice marginal retreat from the Nakina and Agutua moraines likely permitted lakes Agassiz and Ojibway to coalesce, at which point the entire southern margin of the Laurentide Ice Sheet in Ontario was in contact with standing water. Total overburden thicknesses of less than 20 m are expected in the project area (from Mcllraith and Stott, 2005).

The project area is located just south of 52 oN and therefore up to 10% is underlain by permafrost. The effects of permafrost are evident in the shape of interconnected, round, shallow lakes throughout the area (thermokarst) as well as 2- 3 m high palsas covered by dense stands of black spruce which are characteristic of periglacial processes elsewhere in the subarctic.

s.o SUMMARY OF EXPLORATION PROGRAMME

Exploration work on the 22 Fort Hope project mineral claims began in year 2005, De Beers Canada Inc. (DBCI) completely reviewed the reconnaissance geophysical data from OTH, the selection process of anomalies, the grading and prioritization of anomalies with all other available information including regional bedrock geology, the surficial geology, DBCI regional and historical heavy mineral sampling results and the digital terrain model. DBCI continued aboriginal liaison to gain access to the project area. Access was granted during December 2005. A contract was signed with Aeroquest Surveys Limited (AQL) to conduct a high resolution helicopter borne magnetic/electromagnetic survey over the claims on January 06, 2006. The survey commenced on January 28 and was halted on February 02, 2006.

Table 2 summarises the type of work that was conducted on each mineral claim in the Fort Hope project area. Please see AppendiX 1 and Volume 2 for names and addresses of personnel involved in the exploration programmes.

5

5 _ 1 Helicopter .. borne geophysical survey

A high-resolution helicopter magnetic and electromagnetic follow-up survey (Ogoki River Survey) was conducted at 100m-line spacing over all the mineral claims. The survey took place during the period of January 28 to February 02, 2006 and a total of 840 line-km were flown. The geophysics contractors were based out of the Ogoki community for the entire duration.

The full operations report, maps, data and interpretation for this survey form Volume 2 of this report.

5 _ 1 _ 1 SURVEY SPECIFICATIONS

Survey specifications can be found in Volume 2. Total line kilometers traversed per claim block and related costs can be found in Table 3.

5.1.2 INTERPRETATION

Because the geology in the Fort Hope area is quite complex, many high intensity magnetic anomalies can be attributed to bedrock sources as opposed to discrete intrusive sources. Magnetic anomalies that occur in these greenstone belt terrains tend to be of very high amplitude and, more often than not, are not indicative of a kimberlitic signature (general data collected over worldwide kimberlites show that very high magnetic susceptibilities tend to be the exception rather than the rule (Hodgkinson, 2001).

From an electromagnetic perspective a target showing a conductive response will be more interesting. However one must be careful of interpretation of conductivity responses that occur in lakes as sediment in the lake bottom tend to mimic or mask kimberlitic (or intrusive) signatures (Hodgkinson, 2001).

The Ogoki River follow-up survey blocks were flown over selected magnetic targets and as such the EM data is used as a lOre-grading" tool rather than a direct exploration method. What these data will generally NOT show (except fortuitously) are new EM only targets (Hodgkinson, 2001). Re-grading of anomalies is used in conjunction with other geological and geochemical data for latter drilling.

The anomalies were graded in the following manner according to De Beers' classification scheme:

Grade 1: Very high likelihood of representing a kimberlite source. The anomaly is discrete, has good amplitude and has shallow depth. It

6

also represents a body of large enough diameter to make it interesting (considering the line spacing). These anomalies should be followed up with ground truthing and/or sampling based on their geophysical signature alone, since they exhibit most of the characteristics of an intrusive source.

Grade 2: A good chance of representing a kimberlitic source. These anomalies would still be discrete but more subtle and will have lower amplitude. The size will be smaller (often l-line anomalies) or in some cases quite large (maybe representing deeper bedrock sources). Grade 2 anomalies should also be considered for follow-up geophysics. These anomalies have some of the characteristics of an intrusive source.

Grade 3: These are poor anomalies which in this dataset could represent an intrusive source, but may also be explained by local variations in bedrock geology. These anomalies can sometimes be related to other structural features (fault intersections, small blows on dykes). These anomalies can also be at the limit of the resolution of the data. Grade 3 anomalies should only be considered for followup if there is supporting data such as positive sampling results. These anomalies may be due to an intrusive source, but supporting evidence is required.

The 22 claims were taken over anomalies grade 1 and 2.

6 .0 RESULTS

Volume 2 summarizes the type of work conducted on each of the 22 mineral claims.

6. 1 Geophysical survey results

Please see "Report on a Helicopter-Borne IMPULSE System Electormagnetic & Magnetic Survey, Aeroquest Job # 05060, Ogoki Project (Rudd, 2006)", Volume 2 for the Ogoki River Survey results and follow-up grades.

7.0 CONCLUSION

As concluded by Aeroquest and agreed by DBCI highest priority targets should be drill tested to identify possible kimberlite intrusions, and these results should dictate the testing of lower priority targets.

Please see Appendix 1 for the Statement of Costs, Declaration of Assessment work for these 22 mineral claims, and Expenditure Allocation Chart.

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8.0 REFERENCES

Hodgkinson, G., 200 1 . Report: Interpretation of the Schryburt Lake Survey. Wigwascence Lake Project. De Beers Internal Report.

Barnett, P.J., Henry, A.P. and Babuin, D., 1991a. Quaternary geology of Ontario, east-central sheet; Ontario Geological Survey, Map 2555, scale 1 : 1 000 000.

Barnett, P.J., Henry, A. P. and Babuin, D., 1991 b. Quaternary geology of Ontario, west-central sheet; Ontario Geological Survey, Map 2554, scale 1 : 1 000 000.

Mcllraith, S.J. and Stott, G. M. 200 5. Lowlands drill hole data compilation; Ontario Geological Survey, Miscellaneous Release€Data 152.

Norris, A. W., 1993. Hudson Platform - Geology; Chapter 8 in Sedimentary Cover of the Craton in Canada. D. F. Stott and J. D. Aitkin (Eds.); Geological Survey of Canada, Geology of Canada, no. 5, p. 653 -7 00.

Ontario Geology Survey, 2 000. Quaternary geology of Ontario; Ontario Geological Survey. Digital data from Maps 2553. 2554, 2555, 2556 • scale 1: 1 000 000.

Prest, V.K., Grant, D.R. and Rampton. V.N .• 1968. Glacial Map of Canada; Geological Survey of Canada. Map 125 3A, scale 1 : 5 000 000.

Sanford, B.V and Grant. A.C. 1990. New findings relating to the stratigraphy and structure of the Hudson Platform; In Current Research, Part D. Geological Survey of Canada, Paper 90-1 D, p. 17 -30.

Sanford, B.V., Norris, A.W. and Bostock, H.H. 1968. Geology of the Hudson Bay Lowlands (Operation Winisk); Geological Survey of Canada. Paper 67-60, 118pp.

Stott, G. M. and Corfu, F. 1991. Uchi Subprovince; Chapter 6 in Geology of Ontario, Ontario Geological Survey, Special Volume 4. Part 1, p. 145-236.

Thorleifson, L. H., 1989. Quaternary stratigraphy of the Central Hudson Bay Lowland. Northern Ontario. Canada. Ph. D. Thesis; University of Colorado.

Thurston, P. C. and Carter, M. W. 1970. Operation Fort Hope; Ontario Department of Mines and Northern Affairs, Miscellaneous Paper 42, 64 pp.

8

9.0 STATEMENT OF QUALIFICATIONS

Bruce McMonnies

I reside at 314 Broadway Avenue, North York, Ontario, M4P 1 W3 .

I hold a Master of Mineral Exploration Technologies from Curtin University in Perth WA and a B. App. Sc. (Geology) degree from Royal Melbourne University. Melbourne, Victoria, Australia.

I have practised geology and geophysics on a continuous basis since 1983.

I am a practicing member of the Association of Professional Geoscientists of Ontario (Certificate of Registration Number: 0966).

I hold a valid Ontario Prospector's licence (1003084).

I act as an agent for De Beers Canada Inc. My current job title at De Beers Canada Inc. is Senior Project Manager/Process Leader Geophysics.

Bruce McMonnies

March 23,2006

9

10.0 FIGURES

10

Figure 1 - Location Map of Mineral Claim Blocks

1 1

~ I 520000 53000u 540000 550000 560000 570000 58~000 I

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51DoOn

o o o o " 1-U")

o o o o cry "-'"

a a a o

'" "-'"

o o o o "'"

g o o o "or>

o a o o 0> <D

'"

o a o a 00 <0

'"

3014664

~3011199

P'- 3011200

3014669

~F g ~ 3011201E

3011198 e ~3014665

3011179

~ 3011171

3011175

.~ 3011193

S. 3014660

3014663 ~30 11167

3~1180

~ 3011174

~ 3011173 3011172 IE!

3014668 I;;J

. ~ 3011166

3011191

c=J Fort Hope Surveyed Claims

DE BEERS CANADA INC.

Ontario Fort Hope 2006 Geophysics o 3 6 12 18 ---- -

Kilometers

NAD27 Zone 16

Fort Hope Geophysics-06.mxd (MEM Mar.2B106)

1 2

11.0 Tables

1 3

Table 1 - list of mineral claims in the Fort Hope area

Claim Units RECORD DT ANNIV DT Township Area P3011166 1 2 04-Mar-03 04-Mar-06 RUBY CREEK G-0392 P3011167 4 04-Mar-03 04-Mar-06 BMA 516861 G-5118 P3011172 16 04-Mar-03 04-Mar-06 RUBY CREEK G-0392 P3011173 16 04-Mar-03 04-Mar-06 LANGRIDGE LAKE G-2486 P3011174 9 04-Mar-03 04-Mar-06 BMA515861 G- 5 1 17 P3011175 9 04-Mar-03 04-Mar-06 GITTINS LAKE G-0256 P3011179 9 04-Mar-03 04-Mar-06 DUSEY RIVER PORCUPINE G-0230 P3011180 9 04-Mar-03 04-Mar-06 BMA 516861 G-5118 P3011191 1 6 04-Mar-03 04-Mar-06 RUBY CREEK G-0392 P3011192 9 04-Mar-03 04-Mar-06 RUBY CREEK G-0392 P3011193 9 04-Mar-03 04-Mar-06 BMA 517861 G-5119 P3011198 9 04-Mar-03 04-Mar-06 OXTOBY LAKE G-0365 P 3011201 9 04-Mar-03 04-Mar-06 NORTH OF OGOKI TRADING POST G-1240 P 3014660 12 05-Nov-04 05-Nov-06 BMA 516861 G-5118 P 3014663 9 05-Nov-04 05-Nov-06 BMA516861 G-5118 P 3014665 9 05-Nov-04 05-Nov-06 GITTINS LAKE G-0256 P 3014668 6 o 1-Nov-04 o 1-Nov-06 EAST OF DUSEY RIVER G-0234

TB 301 1 171 12 04-Mar-03 04-Mar-06 DUSEY LAKE G-0229 TB 3011199 16 04-Mar-03 04-Mar-06 WOWCHUK LAKE G-0464 TB3011200 9 04-Mar-03 04-Mar-06 GOURLIE LAKE G-02S8 TB 3014664 12 o 1-Nov-04 o 1-Nov-06 OXTOBY LAKE G-0365 TB 3014669 4 o 1-Nov-04 o 1-Nov-06 EAST OF WASHI LAKE G-0240

14

Table 2 - Summary of type of work conducted on mineral claims in the Fort Hope project area

Claim line Spacing Geophysics Block line km P3011166 100m Helicopter FDEM & MAG BG 44.86 P3011167 100m Helicopter FDEM & MAG BA 45.92 P3011172 100m Helicopter FDEM & MAG BF 29.59 P3011173 100m Helicopter FDEM & MAG AZ 35.30 P3011174 100m Helicopter FDEM & MAG BB 28.57 P3011175 100m Helicopter FDEM & MAG AW 27.68 P3011179 100m Helicopter FDEM & MAG AV 33.38 P3011180 100m Helicopter FDEM & MAG BO 28. 1 1 P3011191 100m Helicopter FDEM & MAG BG 40.33 P3011192 100m Helicopter FDEM & MAG BG 32.67 P3011193 100m Helicopter FDEM & MAG Be 59.48 P3011198 100m Helicopter FDEM & MAG AU 23.95 P 3011201 100m Helicopter FDEM & MAG BH 41.56 P 3014660 100m Helicopter FDEM & MAG BE 64.53 P 3014663 100m Helicopter FDEM & MAG BA 40.79 P 3014665 100m Helicopter FDEM & MAG AY 67.92 P 3014668 100m Helicopter FDEM & MAG AX 17.67

TB 30 II 171 100m Helicopter FDEM & MAG AT 17.78 TB 3011199 100m Helicopter FDEM & MAG AR 40.00 TB3011200 100m Helicopter FDEM & MAG AP 44.29 TB 3014664 100m Helicopter FDEM & MAG AS 59.06 TB 3014669 100m Helicopter FDEM & MAG AQ 33.22

TOTAL 856.66

1 5

Appendix 1

Personnel List Statement of Costs

Expenditure Allocation Chart

16

FORT HOPE PROJECT - 2006

PERSONNEL LIST

Project Geophysicist:

De Beers Personnel:

Bruce McMonnies De Beers Canada Inc. - Exploration Division One William Morgan Drive Toronto, ON M4H 1 N6

Mike McClelland Linda Chung

Geophysical Contractor: Aeroquest Limited 845 Main Street East, Unit 4 Milton, Ontario

Individuals contracted by De Beers can be contacted through De Beers Canada Inc. - Exploration Division in Toronto, ON (address noted above).

17


STATEMENT OF COSTS

Assessment Expenditure Calculation De Beers Canada Exploration Inc. Project: Fort Hope Property Geophysics Programme· 2006

Mineral Claims: P3011166, P3011167, P3011172, P3011173, P3011174, P3011175, P3011179, P3011180, P3011191, P3011192, P3011193, P3011198, P3011201, P3014660, P3014663, P3014665, P3014668, TB3011171, TB3011199, TB3011200, TB3014664, TB3014669

Field related expenditures 2006

Fixed Wing· Survey

856.66 line-km @ $110.00/line-km

mobilization/demobilization

Office related expenditures 2006

De Beers Staff - Chargeout rate:

1 Project Geophysicist @ $950/day x 30 days

Final Geophysics Programme Cost

Total Line-km

Final CostiLine-km

Amount

$94,232.60

$67,000.00

Amount

$28,500.00

Subtotals

$161,232.60

$28,500.00

$189,732.60

856.66

$221.48

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EXPENDITURE ALLOCATION CHART

Claim BLOCK Line-km Line-km Cost Geophysics Mobilization I Geophysicist Total Cost P3011166 v BG* 44.29 $ 110.00 54.871.90 $3,045.46 $1,526.79 $9.444.15 P3011167v BA* 17.78 $110.00 51.955.80 $3.045.45 $950.00 55.951.25 P3011172' BF 44.86 $ 110.00 54.934.60 $3.045.46 $1,526.79 $9.506.85 P 3011173- AZ 45.92 $110.00 $5.051.20 $3.045.45 $1.492.86 59.589.51 P3011174- BB 29.59 5110.00 53.254.90 $3.045.46 51,017.86 $7.318.22 P3011175 J AW 35.30 $ 110.00 $3.883.00 $3.045.45 51.187.50 58.115.95 P3011179' AV 28.57 5110.00 53.142.70 53.045.45 $916.07 57.104.22 P3011180, BO 27 .68 5110.00 53.044.80 53.045.46 5950.00 57.040.26 P3011191, BG* 59.06 5110.00 56.496.60 $3.045.46 51.526.79 $11.068.85 P3011192 BG* 33.22 $ 110.00 $3.654.20 $3.045.46 51.526.78 58.226.44 P3011193' BC 33.38 5110.00 53.671.80 $3,045.46 $ 1, 119.64 $7.836.90 P3011198 - , AU 28. 11 $110.00 $3.092.10 53,045.45 5950.00 $7,087.55

P3011201 BH 40.33 $ 110.00 54,436.30 $3,045.46 $1,323.21 $8.804.97 P3014660' BE 32.67 $ 11 0.00 $3.593.70 53.045.46 51.085.71 $7.724.87 P 3014663· BA* 40.00 $ 110.00 $4.400.00 $3.045.46 $950.00 $8.395.46 P 3014665 , AY 59.48 $ 110.00 56,542.80 $3.045.45 $1,933.93 $11,522.18 P 3014668' AX 23.95 $ 11 O. 00 $2.634.50 $3.045.45 $814.29 $6.494.24

TB 3011171 ( AT 41.56 $ 11 0.00 54.571.60 $3,045.45 51.357.14 $8,974.19 TB 3011199.- AR 64.53 $ 110.00 57.098.30 $3,045.45 $2.137.50 $12.281.25 TB 3011200 1 AP 40.79 $110.00 54.486.90 53.045.45 $1,357.14 $8.889.49 TB 3014664. AS 67.92 $110.00 57.471.20 $3,045.45 $2.239.29 $12.755.94 TB 3014669, AQ 17.67 5110.00 51.943.70 $3.045.45 $610.71 $5,599.86

TOTAL 856.66 $94.232.60 $67.000.00 $28,500.00 $189.732.60 *Claim Line-Km = (Block line-km/Block units) x Claim units

19

Report on a Helicopter-Borne IMPULSE System Electromagnetic

& Magnetic Survey

Aeroquest Job # 05060 Ogoki Project

Ogoki, Ontario NTS 42M07,08,09,10,15,16, 42N12,13

For

1 William Morgan Dr. Toronto, ON, M4H 1 N6 Tel: (416) 645-1710 Fax: (416) 423-0081

by

MAR 3 0 2805

I G,::OSCIENCE ASSESSMEN ___ . OFFICE

-~EROQUEST LIMITED 4-845 Main Street East Milton, Ontario, L9T 3Z3

Tel: (905) 693-9129 Fax: (905) 693-9128 www.aeroquestsurveys.com

March 2006

Report on a Helicopter-Borne IMPULSE System Electromagnetic and Magnetic Survey

Aeroquest Job # 05060 Ogoki Project

Ogoki, Ontario NTS 42M07,08,09,10, 15, 16, 42N12, 13

for

~r BrFRs ( 1.1, :'D"

1 William Morgan Dr. Toronto, ON. M4H 1 N6 Tel: (416) 645-1710 Fax: (416) 423-0081

by

-~EROQUEST LIMITED 4-845 Main Street East Milton, Ontario, L9T 3Z3

Tel: (905) 693-9129 Fax: (905) 693-9128 www.aeroquestsurveys.com

March 2006

== AEROQUEST LIMITED 845 Main Sl East. Unit #4 MI~on. Ontano. Ganada 19T 3Z3

1. TABLE OF CONTENTS

~I 131' rRS ( hr.:. 0:"

1. TABLE OF CONTENTS ................................................................................................................. 1 1.1. List of Figures ........................................................................................................................... 1 1.2. Appendices ................................................................................................................................ 1 1.3. List of Map Products (l: 1 0,000) ............................................................................................... 2

2. INTRODUCTION ........................................................................................................................... 3 3. SURVEY AREA .............................................................................................................................. 3 4. REGIONAL GEOLOGY ................................................................................................................. 5 5. SURVEY SPECIFICATIONS AND PROCEDURES .................................................................... 6 6. AIRCRAFT AND EQUIPMENT .................................................................................................... 7

6.1. Aircraft ...................................................................................................................................... 7 6.2. Magnetometer ........................................................................................................................... 7 6.3. Electromagnetic System ............................................................................................................ 8 6.4. Magnetometer Base Station ...................................................................................................... 9 6.5. Radar Altimeter ......................................................................................................................... 9 6.6. Video Tracking and Recording System .................................................................................... 9 6.7. GPS Navigation System ............................................................................................................ 9 6.8. Digital Acquisition System ..................................................................................................... 10

7. PERSONNEL .................................................................................................................................. 10 8. DELIVERABLES .......................................................................................................................... 11 9. DATA PROCESSING AND PRESENTATION ........................................................................... 11

9.1. Base Map ................................................................................................................................. 11 9.2. Flight Path & Terrain Clearance ............................................................................................. 12 9.3. Electromagnetic Data .............................................................................................................. 12 9.4. Magnetic Data ......................................................................................................................... 13

10. Results and Interpretation .......................................................................................................... 13

1.1. List of Figures

Figure 1. Regional location map of the project area ................................................................................ 4 Figure 2. Survey blocks over Landsat TM imagery ................................................................................. 4 Figure 3. Generalised Bedrock Geology .................................................................................................. 5 Figure 4. The Impulse bird (A) and Magnetometer Sensors (B) ............................................................. 8 Figure 5. AeroTEM II Instrument Rack. ......................................... ; ...................................................... 10

1.2. Appendices

Appendix 1: Survey Block Coordinates Appendix 2: Description of Database Fields Appendix 3: Anomaly Listing Appendix 4: Instrumentation Specification Sheet

Aeroquest Limited - Report on an A eroTEM /I Airborne Geophysical Survey

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=AEROQUEST LIMITED 845 MaIo St East Ulilt #4 MIlton, Ontano. Canada L9T 3Z3

1.3. List of Map Products (1: 10,000)

1: Total Magnetic Intensity (TMI) colour grid with line contours 2: Tilt Derivative Magnetics colour grid with line contours 3: Apparent Resistivity (23,350 Hz Coplanar) colour grid with contours 4: Apparent Resistivity (4,650 Hz Coplanar) colour grid with contours

Aeroquest Limited - Report on an AeroTEM 1/ Airborne Geophysical Survey

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=AEROQUEST LIMITED 845 Main St East, Unit #4 Milton. Ontano. Canada L9T 3Z3

2. INTRODUCTION

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This report describes a helicopter-borne geophysical survey carried out on behalf of DeBeers Canada on the Ogoki River Project, Cochrane District, Ontario. The principal geophysical sensor is Aeroquest's IMPULSE helicopter borne, six frequency electromagnetic system which is employed in conjunction with two high-sensitivity cesium vapour magnetometers in a transverse horizontal gradient configuration. Ancillary equipment includes a real-time differential GPS navigation system, radar altimeter, video recorder, and a base station magnetometer.

The total survey coverage is 857 line-km flown over 19 separate survey blocks at 100 metre line spacing and an azimuth of 360/180. The survey flying described in this report took place from January 26th to February 1 S\ 2006. This report describes the survey logistics, the data processing, presentation, and provides a brief interpretation of the results.

3. SURVEY AREA

The Ogoki River Project area (Figure 1) is located to the west of Ogoki village and approximately 130km SE of the community of Lansdowne House, Northern Ontario. It falIs into NTS areas 42M07,08,09,1O,15,l6 and 42NI2,13. The survey was made up of 19 survey blocks ranging in size from 1.2 km sq to 9.3 over flat terrain (Figure 2, Table 1). Access to the property was by helicopter only. The helicopter was provided by Gateway Helicopters, North Bay, Ontario. The field crew was based at Ogoki base.

Area (km Block sq) Claim Number Township Area NTS Sheet

AP 3.08 3011200 GOURLIE LAKE 042M10

· AQ 1.2 3014669 EAST OF WASHI LAKE 042M07

AR 5.06 3011199 WOWCHUK LAKE 042M10

AS 5.28 3014664 OXTOSY LAKE 042M15

AT 2.72 3011171 DUSEY LAKE 042M07 I

AU 1.95 3011198 OXTOSY LAKE 042M15

AV 1.96 3011179 DUSEY RIVER PORCUPINE 042M07

AW 2.55 3011175 GITTINS LAKE 042M16

AX 1.69 3014668 EAST OF DUSEY RIVER 042M08 I

AY 4.62 3014665 GITTINS LAKE 042M16 ;

:AZ 3.42 3011173 LANGRIDGE LAKE 042M09 , , SA 4.37 3011167,3014663 SMA 516861 042M09

: SS 2.08 3011174 SMA 515861 042M09 : SC 2.38 3011193 BMA 517861 042M09,042M16 · SO 1.92 3011180 SMA 516861 042M09

i I

· BE 2.34 3014660 SMA 516861 042M09 i I SF 3.2 3011172 RUBY CREEK 042M09, 042N12 I ,

3011166,3011191,3011192 RUBY CREEK SG 9.26 042N12 I

SH 3 3011201 NORTH OF OGOKI TRADING POST 042N13 ,

Table 1. Outline of project areas, claims and NTS sheets.

Aeroquest Limited - Report on an AeroTEM II Airborne Geophysical Survey

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= AEROQUEST LIMITED 845 Main St East, Unit #4 MIlton, Ontano Canada L9T 3Z3

I

i S1000N

I Cat l.k.

Root Port.g.

so OO\ O¥~ Lookout

C.nt,,1 Patricl.

Csn.burgh

AII.n Wat.r Armstrong

Nipigon Hou ..

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, .. .'

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Project Area

Audln Arol.nd

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Figure 1. Regional location map of the project area

Figure 2. Survey blocks over Landsat TM imagery.

H.rty

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Aeroquest Limited - Report on an AeroTEM l! Airborne Geophysical Survey

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== AEROQUEST LIMITED 845 Main St East Unit #4 Milton, Dntano. Canada L9T 323

4. REGIONAL GEOLOGY

The blocks are all underlain by archean craton rocks of the Canadian Shield. These rocks vary from intrusives to metavolcanics. These rock units are generally resistive and any widespread conductivity would be sourced in overlying sediment or later sedimentary units . The eastern half of the survey area (see Figure 3) is covered by a thin veneer of Paleozoic sedimentary rocks. These sedimentary rocks gradually thicken towards the east. The target kimberlite pipes are expected to have intruded to at least the top of the archean rocks, and depending their age, may also intrude to the top of the Paleozoic rocks.

80 o

COUQ=kl __

Bedrock Geology

• Archean intrusive rocks • Archean metamorphic rocks o Archean volcaniC rocks o Paleozoic sedimentary rocks

Figure 3. Generalised Bedrock of Project Area (after Natural Resources Canada Digital Geoscience Maps).


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== AEROQUEST LIMITED 845 Main Sl East. UOII #4 Milton, Ontano, Canada L9T 3Z3

5. SURVEY SPECIFICATIONS AND PROCEDURES

The survey specifications are summarised in the following table:

Survey Line Coverage (line

Block Name Line S~acingJm) direction km) Dates Flown

AP 100 N-S (0°) 40.79 1 February, 2006 AQ 100 N-S (0°) 17.67 1 February, 2006 AR 100 N-S (0°) 64.53 30 January, 2006 AS 100 N-S (00) 67.92 30 January, 2006 AT 100 N-S (0°) 41.56 29 January, 2006 AU 100 N-S (0°) 28.11 30 January, 2006 AV 100 N-S (0°) 28.57 29 January, 2006 AW 100 N-S (0°) 35.30 30 January, 1 February, 2006 AX 100 N-S (0°) 23.95 29 January, 2006 AY 100 N-S (0°) 59.48 30 January, 2006

AZ 100 N-S (0°) 45.92 30 January, 2006 BA 100 N-S (0°) 57.78 28 January, 2006 BB 100 N-S (0°) 29.59 28 January, 2006

Be 100 N-S (0°) 33.38 29 January, 2006

BO 100 N-S (0°) 27,68 28 January, 2006 BE 100 N-S (0°) 32.67 29 January, 2006 BF 100 N-S (0°) 44.86 28 January, 2006 BG 100 N-S (0°) 136.57 28 January, 2006 BH 100 N-S (0°) 40.33 29 JanuaJY, 2006

.. Table 2. Survey specIfIcatIons

The survey coverage was calculated by adding up the along-line distance of the survey lines and control (tie) lines in the final Geosoft database. The survey was flown with a line spacing of 100 m. The control (tie) lines were flown perpendicular to the survey lines with a spacing of 1000 m.

The magnetometer sensors were mounted in 2 lateral booms on the EM bird which is suspended 30m (100ft) below the helicopter for a sensor separation of 6.45 m. Nominal survey speed was 120km/hr or 65 knots. Scan rates for data acquisition was 10Hz (10 times per second) for the electromagnetics and magnetometer, and 5Hz for the altimeter and GPS determined position. This translates to a geophysical reading about every 3.3 metres along flight track but ground speed does vary depending on the strength of the prevailing wind and topographic relief.

Navigation is carried out using a GPS receiver, an AGNA V2 system for navigation control, and an RMS DGR-33 data acquisition system which records the GPS coordinates. The x-y-z position of the aircraft, as reported by the GPS, is recorded at 0.2 second intervals.

The operator was responsible for ensuring the instrument was properly warmed up prior to departure and that the instruments operated properly throughout the flight. He also maintained a detailed flight log during the survey noting the times of the flight as well as any unusual geophysical or topographic features. High altitude zero calibration lines were flown at regular intervals during the flight.

Aeroquest Limited - Report on an AeroTEM 11 Airborne Geophysical Survey

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=AEROQUEST LIMITED ~I HI rR\ 845 Main 51. East. Unit #4 Milton. Ontano. Canada L9T 3Z3

(:..r. :"0;'

The magnetics base station was located such that it could be continuously monitored. The mag sensor and GPS antenna were installed on poles located metres away from any potential magnetic interference or any obstructions to the GPS signals (sensor location -latllong). The magnetics data was logged internally in the magnetometer and in real time on a laptop computer and transferred to the field processing station daily.

On return of the aircrew to the helicopter base, the RMS DGR-33 acquisition system survey data was transferred to Compact Flash Disks and then downloaded onto the field data processing work station. In-field processing included data archiving and flight path reconstruction, quality control checks and preliminary processing of EM and magnetic data. Generation of a Geosoft GDB database and production of preliminary EM, magnetic contour, and flight path maps were done of the field data processing computer. Any data exhibiting either poor flight control or technical problems with the control or geophysical instrumentation were rejected. In those events the lines were reflown.

Survey lines which show excessive deviation from the intended flight path are re-flown. Any line or portion of a line on which the data quality did not meet the contract specification was noted and reflown.

6. AIRCRAFT AND EQUIPMENT

6.1. Aircraft A Eurocopter (Aerospatiale) AS350B2 "A-Star" helicopter - registration C-FDEV was used as survey platform. The helicopter was o\\ned and operated by Gateway Helicopters, North Bay, Ontario. Installation of the geophysical and ancillary equipment was carried out by Aeroquest Limited at Ogoki Base, Ontario and the system was ferried to the survey area. The survey aircraft was flown at a nominal terrain clearance of220 ft (65 m).

6.2. Magnetometer The Aeroquest IMPULSE airborne survey system employs two Geometries G-823A cesium vapour magnetometer sensors in a horizontal gradient configuration mounted on the EM bird. The sensors are mounted in two stringers orthogonal to the flight path, 6.54 metres apart. The sensitivity of the magnetometer is 0.001 nanoTesla at a 0.1 second sampling rate. The nominal ground clearance of the magnetometer bird is 30 metres. The magnetic data is recorded at 10 Hz by the RMS DGR-33.


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== AEROQUEST LIMITED 845 MaIn Sl East. Unit #4 MLlton. Omana, Canada 19T 3Z3

, . . .,. ,

• !

Figure 4. The Impulse bird (A) and Magnetometer Sensors (8)

6.3. Electromagnetic System

The electromagnetic system employed was an Aeroquest IMPULSE 6 channel frequency domain towed bird system. This wideband frequency-domain system utilises a single computer-controlled, high-output transmitter driver to power a single horizontal coplanar and vertical coaxial transmitter coils, producing a total of six frequencies (three in each coil orientation). The common coil approach used in IMPULSE has the potential to minimise system baseline drift and the often seen disparate performance of the many superimposed coil sets found in traditional frequency-domain systems. The IMPULSE system uses a larger diameter tubular coil platform (30" as opposed to the traditional 20" ) which permits the system to generate larger dipole moments, thereby resulting in an improved signalto-noise ratio.

Calibration of the IMPULSE system conforms to the 4: 1 convention for coplanar to coaxial response. Furthermore, although the coil separations of the coplanar and coaxial coils are 6.32 and 6.68 metres respectively. the calibration is configured to give the equivalent response of a 6.5 metre coil separation.

Aeroquest Limited - Report on an AeroTEM /I Airborne Geophysical Survey

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== AEROQUEST LIMITED ~l BrlR<; 845 Main St East. Unit #4 Milton. Ontano Canada L9T 3Z3

(;.r. :"D..:.

Calibration of the system is conducted with an external coil which when placed at a certain distance from the bird gives rise to an anomaly of known amplitude. The gain of the system is then adjusted such that the measured response in both the analog and digital records matches the known quantity.

The calibration and phasing were checked with the external coils and ferrite bar respectively in Sudbury and Marathon prior to the start of the survey to ensure the system was properly set-up. Further checking of the system gain is carried out with an internal "Q-coil" mounted in the bird itself. The operator will close the internal coils at regular intervals, e.g. the start, mid-point, and end of each flight, which will render an anomaly. A consistent response amplitude indicates the system is working correctly.

6.4. Magnetometer Base Station

The base magnetometer was a GEM Systems GSM-19 overhauser magnetometer with a built in GPS receiver and external GPS antenna. Data logging and UTC time syncronistation was carried out within the magnetometer, with the GPS providing the timing signal. The data logging was configured to measure at 1.0 second intervals. Digital recording resolution was 0.001 nT. The sensor was placed on a tripod in an area of low magnetic gradient and free of cultural noise sources. A continuously updated display of the base station values was available for viewing and regularly monitored to ensure acceptable data quality and diurnal variation.

6.5. Radar Altimeter

A Terra TRA 3500/TRI-30 radar altimeter is used to record terrain clearance. The antenna was mounted on the outside of the helicopter beneath the cockpit. Therefore, the recorded data reflect the height of the helicopter above the ground. The Terra altimeter has an altitude accuracy of+/- 1.5 metres.

6.6. Video Tracking and Recording System

A high resolution digital colour 8mm video camera is used to record the helicopter ground flight path along the survey lines. The video is digitally annotated with GPS position and time and can be used to verify ground positioning information and cultural causes of anomalous geophysical responses.

6.7. GPS Navigation System

The navigation system consists of an Ag-Nav Incorporated AG-NAV2 GPS navigation system comprising a PC-based acquisition system, navigation software, a deviation indicator in front of the aircraft pilot to direct the flight, a full screen display with controls in front of the operator, a Mid-Tech RX400p WAAS-enabled GPS receiver mounted on the instrument rack and an antenna mounted on the magnetometer bird. WAAS (Wide Area Augmentation System) consists of approximately 25 ground reference stations positioned across the United States that monitor GPS satellite data. Two master stations, located on the east and west coasts, collect data from the reference stations and create a GPS correction message. This correction accounts for GPS satellite orbit and clock drift plus signal delays

Aeroquest Limited - Report on an AeroTEM II Airborne Geophysical Survey 9

=AEROQUEST LIMITED 845 Main St East, Unit #4 Milton, Omano, Canada L9T 3Z3

caused by the atmosphere and ionosphere. The corrected differential message is then broadcast through one of two geostationary satellites. or satellites with a fixed position over the equator. The corrected position has a published accuracy of under 3 metres. A recent static ground test of the MidTech W AAS GPS yielded a standard deviation in x and y of under 0.6 metres and for z under 1.5 metres over a two-hour period.

Survey co-ordinates are set up prior to the survey and the information is fed into the airborne navigation system. The co-ordinate system employed in the survey design was WGS84 [World] using the UTM zone 16N projection. The real-time differentially corrected GPS positional data was recorded by the RMS DGR-33 in geodetic coordinates (latitude and longitude using WGS84) at 0.2 s intervals.

6.8. Digital Acquisition System

The RMS Instruments DGR-33A data acquisition system was used to collect and record the analogue data stream, i.e. the positional and secondary geophysical data, including processed 12 channel EM, magnetics, radar altimeter, GPS position, and time. The data was recorded on 128Mb capacity FlashCard. The RMS output was also directed to a thermal chart recorder for on-board realtime QA/QC.

7. PERSONNEL

Figure 5. Impulse Instrument Rack

The following Aeroquest personnel were involved in the project: • Manager of Operations: Bert Simon • Field Data Processor: Rory Kutiuoglu • Field Operator: Victor Shevchenko • Data Interpretation and Reporting: Jonathan Rudd, Marion Bishop

The survey pilot, Stephane Noel and engineer, Mike Frizell were employed directly by the helicopter operator - Gateway Helicopters.

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=AEROQUEST LIMITED 845 Main St. East. Unit #4 Milton. Ontano. Cana<la LST 3Z3

8. DELIVERABLES

The report includes a set of four geophysical products plotted at a scale of 1: 1 0,000. All 4 products are plotted on single map sheets according to block. Products are outlined below:

1: Total Magnetic Intensity (TMI) colour grid with line contours 2: Tilt Derivative Magnetics colour grid with line contours 3: Apparent Resistivity (4.650 Hz Coplanar) colour grid with contours 4: Apparent Resistivity (23.350 Hz Coplanar) colour grid with contours

All the maps show flight path trace. skeletal topography. The magnetic field data is presented as superimposed line contours with a minimum contour intenral of 5 nT. Bold contour lines are separated by SOOnT.

The geophysical profile data is archived digitally in a Geosoft GOB binary format database. A description of the contents of the individual channels in the database can be found in Appendix 2. A copy of this digital data is archived at the Aeroquest head office in Milton.

9. DATA PROCESSING AND PRESENTATION

All in-field and post-field data processing was carried out using Aeroquest proprietary data processing software, and Geosoft Oasis montaj software. Maps were generated using 36-inch wide Hewlett Packard ink-jet plotters.

9.1. Base Map

The geophysical maps accompanying this report are based on positioning in the NAD27 datum. The survey geodetic GPS positions have been projected using the Universal Transverse Mercator projection in Zone 16 north. A summary of the map datum and projection specifications is given following:

• Ellipse: Clarke 1866 • Ellipse major axis: 6378206.4 eccentricity: 0.08227185422 • Datum: North and Central America - Canada; Cuba; Mexico; United States (USA) • Datum Shifts (x,y,z) : 0, 0, 0 metres • Map Projection: Universal Transverse Mercator Zone 16 (Central Meridian 87°W) • Central Scale Factor: 0.9996 • False Easting, Northing: SOO,OOOm, Om

For reference, the latitude and longitude in WGS84 are also noted on the maps. Contour lines and background topo were derived from NASA Shuttle Radar Topography Mission (SRTM) 90m resolution OEM data. Rivers and lakes were digitised from Landsat TM imagery.

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== AEROQUEST LIMITED 845 Main 51 East, Unit #4 Milton. Ontano, Canada L9T 3Z3

9.2. Flight Path & Terrain Clearance

~I BIIR\ (:.r. :..0;..

The position of the survey helicopter was directed by use of the Global Positioning System (GPS). Positions were updated five times per second (5Hz) and expressed as WGS84 latitude and longitude calculated from the raw pseudo range derived from the C/ A code signal. The instantaneous GPS flight path, after conversion to UTM co-ordinates, is drawn using linear interpolation between the x/y positions. The terrain clearance was maintained with reference to the radar altimeter. The raw Digital Terrain Model (DIM) was derived by taking the GPS survey elevation and subtracting the radar altimeter terrain clearance values. The calculated topography elevation values are relative and are not tied in to surveyed geodetic heights.

Each flight included at least two high elevation 'background' checks. During the high elevation checks, an internal 5 second wide calibration pulse in all EM channels was generated in order to ensure that the gain of the system remained constant and within specifications.

9.3. Electromagnetic Data

A two stage digital filtering process was used to reject major sferic events and to reduce system noise in the IMPULSE electromagnetic system.

Local sferic activity can produce sharp, large amplitude events that cannot be removed by conventional filtering procedures. Smoothing or stacking will reduce their amplitude but leave a broader residual response that can be confused with geological phenomena. To avoid this possibility, a computer algorithm searches out and rejects the major sferic events. The filter used was a median filter.

The signal to noise ratio was further improved by the application of a low pass filter. This filter has zero phase shift which prevents any lag or peak displacement from occurring, and it suppresses only variations with a wavelength less than 1 second. The filter applied is a mean filter.

The EM channels have been levelled to remove the residual zero offset by the use of a short background line immediately before and immediately following each block. The background line is flown at high altitude (> 1 OOOft), theoretically far enough away from any ground conductivity response. Any residual response is therefore a system offset and can be removed from the on-line response by virtue of linear interpolation between the start and end of flight checks. If any non-linear drift remains in the data, then artificial local levelling lines were employed. Any remaining long wavelength response of around 2 ppm or less may be considered background or low amplitude error and may be disregarded.

During the high elevation checks, an internal (Q-Coil) calibration pulse in all EM channels was generated in order to ensure that the gain of the system remained constant and within specifications.

A sur~cial conductivity response is ubiquitous across all survey areas and typically features a very strong quadrature response in all frequencies and a strong in-phase response in the high frequencies.

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=-AEROQUEST LIMITED 845 Main St. East, Unit #4 Milton, Ontano. Canada L9T 3Z3

9.4. Magnetic Data

Prior to any leveling the magnetic data was subjected to a lag correction of -0.1 seconds and a spike removal filter. The filtered aeromagnetic data were then corrected for diurnal variations using the magnetic base station data. Corrections for the regional reference field (IGRF) have not been applied as the variation of this field across the small survey area would be negligible. The corrected profile data were interpolated on to a grid using a bi-directional grid technique with a grid cell size of 25 metres. The final leveled grid provided the basis for threading the presented contours which have a minimum contour interval of 10.0 nT.

In order to map shallow basement response a 'tilt' derivative product was calculated from the TMI grid. The Tilt Derivative (TDR) of the TMI tends to enhance smaller wavelength magnetic features which define shallow basement structures as well as potential mineral exploration targets.

The TDR is defined as:

TDR = arctan (VDRlTHDR)

where VDR and THDR are first vertical and total horizontal derivatives, respectively, of the total magnetic intensity T.

VDR= dT/dz THDR = sqrt ( (dT/dx)"2 + (dT/dy)"2 )

1 O. Results and Interpretation

The survey was successful in characterizing the conductive and magnetic properties over the targets in each of the survey areas. The magnetic data provides a high resolution gradient-enhanced image of the magnetic field across the targets. And the EM data provides for an interpretation of the conductivity structure within and in the vicinity of the targets.

In the following table, the magnetic response for each of the targets is characterized by shape, and any internal complexity. In general, it is thought that the less internal complexity and the more rounded the magnetic source is, the more likely the source is to be a kimberlite. And while it is not necessary for a kimberlite pipe to have an electromagnetic response, if there is a directly correlating conductive response with the magnetic source, the priority on the target should be heightened. This heightened priority is based on the fact that it is common for the upper layer of a kimberlite to be weathered to a clay-rich, conductive source. So in the following table priority is assigned from 1 for a high priority target to 5 for a low priority target for each of the magnetic targets based on the above prioritization factors.

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Block Magnetic response EM Response AP good round shape, but with a tail to no directly correlating EM response -

the south-southeast conductive source of 500 ohm-m within the mag feature

AQ oval shape with long axis trending E- coincident resistivity low of 230 ohm-m W

AR odd shape with internal complexity semi-coincident resistivity low over a portion of the magetic source

AS northeast feature is quite linear with northeast feature has an associated E-W trend; central feature has two discrete conductive south dipping bedrock 'lobes' source; main feature has a partially

coincident resistivity low associated with it

AT two oval to round sources along a both features have correlating resistivity SE trending axis lows

AU oval shape with long axis trending no correlating EM response; permeability NE response seen in in-phase

AV odd shaped feature with a NE trend partially coincident resistivity low

AW good round shape largely coincient resistivity high with the suggestion of a larger annular conductive zone surrounding the mag source

AX odd shaped feature partially coincident resistivity low

AY good round shape no correlating EM response; permeability response seen in in-phase

AZ northwest feature is oval; central no correlating EM response for either source is round magnetic source

SA 3 round to oval sources no correlating EM response for any of the magnetic sources

BB good round shape no correlating EM response

Be oval shape no correlating EM response

BO good round shape no correlating EM response

BE odd shaped magnetic source no correlating EM response

SF 2 sources - both with good round both have correlating resistivity lows, NE shape source has more direct correlating EM

response

SG 3 sources - all with good round none have any correlating EM response shape

BH oval shaped magnetic source no correlating EM response


14

~, 11, rR\ (hr, :"D~

Priority 4

2

4

NE - 5; main 3

2; 2

3

3 3

4

3

NW-5; central -3

4;4;4

3 4

3

NE - 2; main - 3

3;3;3

4

== AEROQUEST LIMITED 845 Main St East, Unit #4 MIlton. Ontano. Canada L9T 3Z3 ~r Br rR\

(h' • .:.D;.

The targets should be correlated with other geologic and geochemical information and based on this, adjustments should be made to the geophysical-based prioritization. The highest priority targets should then be drill tested. Drill testing of the lower priority targets should take into consideration the results of the initial stage of drilling.

Re'IAJ ~itted' \

Jonathan Rudd, P.Eng. Marion Bishop Aeroquest Limited March,2006

Aeroquest Limited - Report on an A eroTEM II Airborne Geophysical Survey

15

845 Main 5t East. Unit #4 Milton, Ontano. Canaoa L9T 3Z3 ~I Brl It\ ( ;..r,:"D;"

APPENDIX 1 - PROJECT CORNER COORD INA TES

The Ogoki River Project boundaries are outlined below. All geophysical data presented in this report have been windowed to this outline. Positions are in UTM Zone 16 - NAD27.

Block OGKAP

OGKAQ

OGKAR

OGKAS

OGKAT

OGKAU

OGKAV

OGKAW

OGKAX

OGKAY

Corner x X Block Corner x 1 505610 5715900 OGKAZ 1 549010 2 507010 5715900 2 550810 3 507010 5718100 3 550810 4 505610 5718100 4 549010 1 513060 5695990 OGKBA 1 556340 2 514060 5695990 2 558640 3 514060 5697190 3 558640 4 513060 5697190 4 556340 1 515590 5725170 OGKBB 1 556970 2 517790 5725170 2 558270 3 517790 5727470 3 558270 4 515590 5727470 4 556970 1 529470 5741 270 OGKBC 1 561 380 2 531 870 5741 270 2 562780 3 531 870 5743470 3 562780 4 529470 5743470 4 561 380 1 530500 5684520 OGKBD 1 561 920 2 532 100 5684520 2 563120 3 532100 5686220 3 563 120 4 530500 5686220 4 561 920 1 532700 5740640 OGKBE 1 562790 2 534000 5740640 2 564090 3 534000 5742 140 3 564090 4 532700 5742 140 4 562790 1 533210 5687880 OGKBF 1 568460 2 534610 5687880 2 570060 3 534610 5689280 3 570060 4 533210 5689280 4 568460 1 541450 5738590 OGKBG 1 571 775 2 542950 5738590 2 573352 3 542950 5740290 3 573352 4 541 450 5740290 4 576388 1 544750 5689980 5 576388 2 546050 5689980 6 576388 3 546050 5691 280 7 574781 4 544750 5691 280 8 573472 1 544940 5738680 9 573472 2 547040 5738680 10 571 775 3 547040 5740880 OGKBH 1 577 970 4 544940 5740880 2 579470

3 579470 4 577 970


16

y 5714050 5714050 5715950 5715950 5726940 5726940 5728840 5728840 5717 480 5717 480 5719080 5719080 5733090 5733090 5734790 5734790 5720000 5720000 5721 600 5721 600 5730600 5730600 5732400 5732400 5712480 5712480 5714480 5714480 5709170 5709170 5710004 5710004 5708516 5708039 5708039 5708039 5707 146 5707 146 5741 070 5741 070 5743070 5743070

== AEROQUEST LIMITED 845 Main St East. Unit #4 Milton Ontano, Canada 19T 323 ~r \31 1 RS

(:..r.;. Di.

APPENDIX 2 - Description of Database Fields

The GDB file is a Geosoft binary database. In the database, the Survey lines and Tie Lines are prefixed with an "L" for "Line" and "T" for "Tie".

Database (XX_05060_ final.gdb):

Column Units Description X metres Zone 16 UTM Easting (NAD27) y metres Zone 16 UTM Easting (N AD2 7)

lat Dec. Degrees Latitude (WGS84)

long Dec. Degrees Longitude (WGS84)

tid seconds Time reference fiducial

mantid Manual Fiducial

utctime seconds UTC time in seconds of the day

date YYYY/MMIDD Survey Date

gaItf metres GPS Altitude (relative to NAD83 ellipsoid)

raIt metres Radar Altimeter

bheight metres Terrain clearance of EM bird

dtm metres Raw Digital Terrain Model

basemagf nT Base Station magnetic field

rawmagl nT Raw total magnetic intensity (magI)

magI nT Diurnally corrected Total Magnetic Intensity (magI)

magI tie nT Diurnally and tie line corrected Total Magnetic Intensity (magI)

magllev nT Micro-levelled Total Magnetic intensity (magI)

magI IVD nTlm Calculated Magnetic Vertical Gradient (magI)

rawmag2 nT Raw total magnetic intensity (mag2)

mag2 nT Diurnally corrected Total Magnetic Intensity (mag2)

CXI870, CXQ870 ppm EM 870Hz Coaxial inphase and quadrature

CXI4350, CXQ4350 ppm EM 4350Hz Coaxial inphase and quadrature

CXI21750, CXQ21750 ppm EM 2I750Hz Coaxial inphase and quadrature

CPI930, CPQ930 ppm EM 930Hz Coplanar inphase and quadrature



RES4650 Ohm-m Apparent resistivity - 4650 Hz coplanar

RES23250 Ohm-m Apparent resistivity - 23250 Hz coplanar

Aeroquest Limited - Report on an A eroTEM /I Airborne Geophysical Survey

17

=AEROQUEST LIMITED 845 Main Sl East. unit it4 Mitton, Ontano. Canada L9T 3Z3

APPENDIX 4: IMPULSE Instrumentation Specification Sheet

====================~AQL AEROOUEST

IMPULSE Helicopter Electromagnetic (HEM) System

The IMPULSE EM is a digital helicopter-borne frequency-domain electromagnetic system developed by Aeroquest and introduced into the commercial geophysical survey market at the beginning of 1997. This innovative wideband frequency-domain system utilizes a single computer-controlled, high-output transmitter driver to power single horizontal coplanar and vertical coaxial transmitter coils, producing a total of six frequencies (three in each coil orientation). This differs significantly from conventional multi-frequency systems currently used in the industry in that the conventional systems use a multitude of independent coils (e.g., a separate and independent coil set for each frequency). As a result, the IMPULSE approach can avoid many of the pitfalls associated with a plethora of coils, all interacting with each other. Furthermore, the common coil approach used in IMPULSE has the potential to minimize system baseline drift and the often seen disparate performance of the many superimposed coil sets found in traditional frequency-domain systems. In addition, the IMPULSE system uses a larger diameter tubular coil platform (30" as opposed to the traditional 20") which permits the system to generate larger dipole moments, thereby resulting in an improved signal-to-noise ration ... all of which quickly translates to better integrity of the measured inphase and quadrature data and an improved depth of exploration.

Number of operation Frequencies: 6 total (3 copaxial. 3 coplanar) Typical operation frequencies (Frequencies are selectable):

Coaxial: 870Hz - 150 Am2 peak. 4350Hz - 150 Am2 peak.

21750Hz - 15 Am2 peak. Coplanar: 930Hz -200 Am2 peak.

)

4650Hz - 100 Am- peak. 23250Hz - 15 Am2 peak

Outputs: 6 inphase and 6 quadrature channels calibrated in ppm Noise Levels: Less then 1 ppm rms under ideal conditions Base-Line Drift: Less then 15 ppm per hour after initial warm-up Output time: constant rate of 0.033 seconds Output sample rate: 30 per second System Power: 30 Amps maximum at 22-28 VDC Tow Cable: 40 metres long with Kevlar strain member and weak-link Temperature range: -30 to +35 degrees CeIcius Overall bird dimensions: 76 cm diameter, 7m length Overall bird weight: 200 kg.

Tel: +1 905 876-2574. Fax: +1 905876-0193. Email: [email protected]


18

\ I / I

I

"

I

/ ~

..86"49'

T17910

T1792Q

-86"49'

-86"49'

T17910

T1792Q

-86'49'

... S' o

r: ... o '" o

/

/

..as"48'

.... 48'

..ss"48'

)

( I

T17910

TOTAL MAGNETIC INTENSITY

58534.6 58127.5

58082.8

58066.3

58054.4

58044.4

58036.7

58029.3

58026.5

58024.3

58023.2

58021 .9

58020.8

58019.4

58018.2

58016.7

58014 .4

58012.4

58010.7

58009.7

58008.6

58007.9

58007.0

58006.3

58005.3

58004.3

58003.0

58001 .8 57999.7

57998.6

57997 .1

57996.0

57995.2

57994.1

57993.0

57991 .5

57989.5

57984.3

57975.3

57957.3

nT

TMI Contour Interval

5nT

10nT

500nT

APPARENT RESISTIVITY

4,650 Coplanar

Apparent Resistivity Contour Interval

250m

1000m

5000m

/

/ ~ ~~

TILT DERIVATIVE

OF TMI ----+--~----____.~---_t_---:!....,-1---+-=1

~ ""Y '-e----1.-53

-3 --------'

T1791 0

T17920

-86"49'

T17910

T17920

• ...

/ I

T17910

T17920

c ~~--------------~-----r--~~

i~" ~

..ss"4B'

1.224

1.040

0.916

0.807

0.703

0.581

0.458

0.347

0.229

0.117 -0.006

-0.082

-0.179

-0.269

-0.345

-0.416

-0.496

-0.564 -0.602

-0.662

-0.717

-0.764

-0.816

-0.861

-0.913

-0.957

·1 .009 -1 .048

-1 .084

-1.120

-1.1 62 -1 .201

-1 .237

-1.268

-1 .310

-1 .339

-1 .394 -1 .449

-1 .559

radians

TDR Contour Interval

0.01 radians

o level line

APPARENT RESISTIVITY

23,250 Coplanar

Apparent Resistivity Contour Interval

250m

l000m

5000m

The topographic data base and contours derived from NASA SRTM (Shuttle Radar Topography Mission) data

Lakes and rivers digitised from Landsat TM imagery Inset data derived from Natural Resources Canada 'Atlas of Canada Base Maps'

Grid North

NAD27 - Zone 16

This map accompanies the technical report entitled 'Report on a Helicopter-Bome Magnetic and Electromagnetic Survey, Ogoki River Project Ontario', by Aeroquest Limited. MarCh 2006

UaClG If

Cit Llh

"bnWI'I' Arm.llong

MlQIIG HI Lookout .... Tinnin

IG_ (),jo.n

-. .' • " " .. Ogok,

." "

Project Iv.a

Aullin

G.r.lllion 8 .. rd..,0,. C ... ml1

.... t

Copptoll

Gnhtm

Lu.on /oIp,gon

"'h AUkok.n i'tJ.onilon Hulktll Rl:>nport

• • <A.E

SUPERIOR

Ib •• thon

F .. n, .... Goucl ... u Fa"pl

t IIoGlkow I: ___ -.. w.w. i eorcltn i • •

2.31837

SURVEY SPECIFICATIONS:

Survey flown: 1 February, 2006

Traverse line spacing : 100 metres

Traverse line direction: N-S (0°)

Nominal EM bird height: 30 metres

Aircraft: Aerospatiale A-Star 35082 (C-FDEV)

INSTRUMENTATION:

Data acquisition : RMS DGR-33

Magnetometer: 2 x Geometries G-823A cesium vapour Installation: 2 lateral booms on EM bird

Sensitivity: .001 nanoTesla

Electromagnetics: IMPULSE System

Configuration: Towed bird NAVIGATION:

Navigation: Differential Global Positioning System (DGPS)

Navigation equipment: AGNAV with MID-TECH RX400p receiver

Radar Altimeter: Terra TRA3000fTRI-30

DATA PROCESSING

Ma9netics: diurnal and micro-leveling corrections

POSITIONING Datum: NAD27

Major Axis: 6378193.633

Eccentricity: 0.082271854

MAP PROJECTION

200

Projection: Universal Transverse Mercator

Central Meridian: 870W (Zone 16)

Central Scale Factor: 0.9996

False EastinglNorthing: 500,000m/Om

scale 1 :10,000

o 200

metre. NAD271UTMlOM INi

400

De Beers Canada Inc. Ogoki River, Ontario

AQ Block NTS 042M07

Survey flown by:

=== A£RQQUEST UMnFD 4-845 Main St. East

Milton, Ont. , CANADA L9T 3Z3 Tel: (906) 693·9129 Fax: (905) 693-9128

www aeroquesllUNeys.com

600

F .....

.. ,w

March 2006 AQ Block

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