GROUND MAGNETIC SURVEY ON THE CRESCENT LAKE …

18
GROUND MAGNETIC SURVEY ON THE CRESCENT LAKE PROPERTY, THUNDER BAY DISTRICT, ONTARIO Latitude 50 0 23' N Longitude 87 0 56'W 2.25 18 prepared by C.F. Staargaard, M.SC., P.Ge4 Lithic Resources Ltd. i 912-510 West Hastings St. Vancouver, B.C. V6B1L8 RECEIVE JAN t O w- ! JEOSCIENCE ASSESSMENT OFRCE January 8, 2003 42L05NW2014 2.25188 JUNIOR LAKE 010

Transcript of GROUND MAGNETIC SURVEY ON THE CRESCENT LAKE …

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GROUND MAGNETIC SURVEY

ON THE

CRESCENT LAKE PROPERTY,

THUNDER BAY DISTRICT, ONTARIO

Latitude 500 23' N Longitude 870 56'W

2.25 18

prepared by

C.F. Staargaard, M.SC., P.Ge4

Lithic Resources Ltd. i

912-510 West Hastings St.

Vancouver, B.C. V6B1L8

RECEIVEJAN t O w-!

JEOSCIENCE ASSESSMENT OFRCE

January 8, 2003

42L05NW2014 2.25188 JUNIOR LAKE 010

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Table of Contents

Introduction and Terms of Reference.............................................................................. 1

Property Description and Location................................................................................... 1

Accessibility, Ciimate, Local Resources, Infrastructure and Physiography..................... 2

History of Work................................................................................................................ 2

Geological Setting

Regional............................................................................................................... 3

Property................................................................................................................ 3

Deposit Types.................................................................................................................. 4

Mineralization................................................................................................................... 4

Exploration

Ground Magnetic Survey.............................................................,............. 5

Interpretation and Conclusions........................................................................................ 5

Recommendations........................................................................................................... 6

References ................................................................................................................... 6

Certificate ................................................................................................................... 7

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List of Figures

Figure No.

1

2

3

4

5

General Location

Claim Disposition

Regional Geology

Property Geology

Ground Magnetic Survey - Total Field Contours

After Page

1

1

3

3

in pocket

List of Tables

Table No. Page

One Crescent Lake Property Claims

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INTRODUCTION AND TERMS OF REFERENCE

Lithic Resources Ltd. holds an option to earn a 1000Xo interest in the Crescent Lake property located

about 240 kilometres north north-east of Thunder Bay, Ontario. A total of 30 line-kilometres of grid

were cut on the property and used to control a ground magnetic survey. This report describes the

results of the survey and makes recommendations for further exploration work. It is based on data in

company files as well as various published sources.

PROPERTY DESCRIPTION AND LOCATION

The Crescent Lake property is located about 240 kilometres north north-east of the city of Thunder

Bay, Ontario (Fig. 1). It consists of a two contiguous blocks of five and seven claims, the particulars

of which are listed in Table 1 and illustrated in Figure 2

The claims are under option to Lithic from Ninety-Nine Resources Ltd. of Vancouver, B.C. Lithic can

earn a 1000Xo interest, subject to certain NSR royalties, in return for S45,800 in cash payments and

the issuance of 195,000 shares over a period of three years.

Table One

Crescent Lake Property Claims

Number

TB 1248064

TB 1248065

TB 1248066

TB 1248067

TB 1248069

TB 1248070

TB 1247070

TB 1238090

TB 1239892

TB 1239893

TB 1239897

TB 1239898

Registered Owner

Lithic

Lithic

Lithic

Lithic

Lithic

Lithic

Lithic

Ninety-Nine Resources

Ninety-Nine Resources

Ninety-Nine Resources

Ninety-Nine Resources

Ninety-Nine Resources

Record Date

2001 -DEC-06

2001 -DEC-06

2001 -DEC-06

2001 -DEC-06

2001-DEC-06

2001 -DEC-06

2001-OCT-05

1999-SEP-07

1999-NOV-18

1999-NOV-18

1999-DEC-13

1999-DEC-13

Expiry Date

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-OCT-05

2002-SEP-07

2002-NOV-18

2002-NOV-18

2002-DEC-13

2002-DEC-13

Hectares

1,482.65

593.06

1,581.50

1,581.50

1,581.50

1,581.50

790.75

1,581.50

1,581.50

1,581.50

1,186.12

395.37

15,518.43

Staargaard Geological Inc.Magnetic Survey - Crescent Lake Property

Lithic Resources UcJanuary 8, 2003

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Crescent Lake

NIPIGON (LAC NIPIGOW

D 10 W X

LITHIC RESOURCESCrescent Lake Property

Thurxlertwy Dislnd. Oniano

Property Location

Slaargaara

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tLITHIC RESOURCES

Crescent Lake PropertyThurtdertay Dislrict, Ontarto

Claim Disposition

Staargaara ?* -1-"" Finn res 1 Geological r BOLOB rigure j

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ACCESSIBILITY. CLIMATE. LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The Crescent Lake property can be reached by highway from Thunder Bay (Fig. 1). Highway 527

(paved) leads 209 kilometres north from Thunder Bay to the settlement of Armstrong. From here, the

all weather Buchanan Forest Products road leads east for a distance of about 100 kilometres to the

property area and traverses the southern claim block. A secondary logging road leads north from

here to within a few hundred metres of the southern boundary of the northern claim block.

The property area is characterised by relatively low relief and abundant small lakes and swampy

areas with limited bedrock exposure. The climate is northern temperate and the area is covered with

boreal forest including jack pine, spruce and poplar. Typically abundant snow begins to accumulate

in November and generally melts by May.

HISTORY OF WORK

Earliest The earliest evidence of exploration work on the property is a number of old pits on a Ni-

Cu occurrence immediately west of Swole Lake.

1983 The first record of work dates from 1983, when Kerr Addison Mines carried out some

reconnaissance geological mapping and soil sampling in the Summit Lake area, the

northwest corner of their survey overlapping the current property area.

1999 Initial prospecting by Inco Ltd. and Ninety-Nine Resources Ltd. revealed the presence of

elevated levels of Ni, Cu and PGE in rocks of the Swole Lake mafic-ultramafic complex.

2001 Berland Resources Ltd. (predecessor to Lithic) established 9.5 line-kilometres of cut grid

over the area of the Ni-Cu-PGE occurrence and carried out HLEM and magnetic ground

surveys, geological mapping and prospecting. Although the results for Ni-Cu-PGE

mineralization were not encouraging, prospecting led to the discovery of a tantalite-bearing

pegmatite dyke near the cut grid. Several samples were sent for petrographic and

chemical analysis.

Staargsard Geologies! Inc.Magnetic Survey - Crescent Lake Property

Lithic Resources LtdJanuary 8,2003

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GEOLOGICAL SETTING

Regional

The Crescent Lake property is situated in the Caribou Lake greenstone belt which is in turn situated

within the eastern part of the Wabigoon Subprovince of the Archean Superior Province (Fig. 3). In

the area of the property, the Caribou Lake greenstone belt is dominated by amphibolitized mafic

flows with lesser metasediments including biotite gneiss, biotite quartz feldspar gneiss and quartzite.

The stratified rocks have been intruded by numerous small bodies of mafic to ultramafic rocks

including gabbro, pyroxenite, anorthosite and anorthosite gabbro. The supracrustal rocks appear to

have been deformed into a belt-scale synform and are unconformably overlain and/or intruded by

Keeweenawan diabase sheet and dykes of Proterozoic age.

Exploration in the last few years has focussed on numerous occurrence of Li-bearing pegmatite

dykes in the region. Nickel-copper-PGE mineralization is associated with several of the mafic to

ultramafic intrusive bodies. One of these, the B4-7 zone located about two kilometres south-west of

the southern claim block, is currently being explored by Landore Resources Ltd.

Property

The northern block of the Crescent Lake property is centred on the Swole Lake mafic to ultramafic

intrusive, the bulk of which consists of a massive, medium-grained pyroxenite which has been

variably altered to actinolrte-tremolitetcarbonate and is variably magnetic (Mccrindle and Lewis,

2001)(Fig. 4). The southern part of the intrusive body consists of a coarse-grained, non-magnetic

melanocratic gabbro. The Swole Lake intrusive is hosted by a south-easterly striking and southerly

dipping sequence of thinly bedded, quartzose metasediments and mafic metavolcanic rocks. A

tantalite-bearing granitic pegmatite dyke was found to cut metasedimentary rocks immediately west

of the Swole Lake intrusive. To the north, the supracrustal sequence is cut by a large granitic

intrusive.

Government mapping shows that the southern claim block is underlain mainly by the same

supracrustal sequence, here striking easterly to south-easterly and dominated by mafic metavolcanic

rocks. A narrow band of quartzose metasediments trends across the middle of the block.

staargaard Geological Inc.Magnetic Survey * Crescent Lake Property

Lithic Resources Ltd-January 8,2003

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KILOMETRES

LITHIC RESOURCESCrescent Lake Property

Ttiunderbay District, Ontario

Regional Geology[fromOGS 1991)

Staaroaard D* D*ne riniimTideological n, U^*HI ' 'y 1-*'^- **

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— L

Ta pegmatite

J 5 -* * i i 9 . XHto Armstrong

B4-7 Zone PGE-Ni-Cu

t /\ mineral occurrence

tOLOMETDES

LITHIC RESOURCESCrescent Lake Property

Thundarbay District. Ontario

Property Geology((ram Pye. 1968}

Staargaard ^ , , ,Geological

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DEPOSIT TYPES

The tantalite-bearing pegmatite dyke on the north claim block belongs the LCT family of pegmatites, a highly fractionated, rare element-bearing class of pegmatites that are known to host economic tantalum mineralization. Examples include the Tanco Mine at Bernic Lake, Bissett, Manitoba and the Wodgina and Greenbushes mines in Australia. Although PGE levels in the Swole Lake intrusive are low, the possibility exists of as yet undiscovered ultramafic intrusives on the southern claim block.

Further exploration on the Crescent Lake property will be directed at the discovery of tantalite- bearing pegmatite dykes and ultramafic-related PGE-enriched nickel-copper deposits similar to that being explored immediately to the west by Landore Resources.

MINERALIZATION

In the fall of 2001, Beriand established a cut grid over the known extent of the Swole Lake intrusion on the northern claim block and carried out geological mapping, prospecting and a ground magnetic survey (Mccrindle and Lewis, 2001)(Ftg. 4). This work showed that PGE are associated with disseminations and blebs of chalcopyrite and pyrrhotite in a 110 metre by 25 metre zone within a pyroxenite-dominant portion of the intrusive body. The average grade of five selected samples taken from the zone was Q.24% Cu, Q.29% Ni, 31 ppb Pt and 27 ppb Pd. Prospecting of the remainder of the intrusion did not locate any additional mineralization.

In the course of grid work, a number of large angular boulders of granitic pegmatite containing visible amounts of lepidolite, spodumene and tantalite were discovered about 75 metres west of the Ni-Cu occurrence. Analysis of selected samples returned values of 159-291 Ta, 36-4, 620 ppm Li, 6-109 ppm Cs and -^lOO ppm Nb. An independent mineralogical study commissioned by Beriand concluded that the mineralogy and chemistry of the samples were consistent with the LCT family of pegmatites, a highly fractionated, rare element-bearing class of pegmatites that are known to host economic tantalum mineralization (Taylor, 2001). The study also suggested that the potential for the discovery of other and similar pegmatites in the immediate vicinity was high.

Stasrgaerd Geologies! !ncMagnetic Survey - Crescent Lake Property

Lithic Resources Ltd.January 8, 2003

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Ground Magnetic Survey

An approximately 2.4 kilometre by 2 kilometre cut grid with lines spaced at 200 metres was established on the southern claim block of the Crescent Lake property by Stares Contracting Corp. who also carried out a ground magnetic survey. A Gem Systems GSM-19 magnetometer with sensitivity of 0.015 nT was used to measure total field magnetic values at 12.5 metre stations along each line and the base line. This system incorporates base station corrections for the magnetic field and outputs a corrected data file. A total of 23.9 kilometres of grid were ultimately surveyed.

Figure 5 shows contoured total field magnetic values across the grid. It can be seen that although a range of values from 54,354 to 61,700 nanoteslas (nT) are present, magnetic relief over the grid area is relatively low, with only a few identifiable trends. The most obvious magnetic feature is a weak (50-1 OOnT) high about 200 metres wide that trends from east to west in the southern half of the grid. This corresponds with a unit of quartzose sediments mapped by Pye (1968) and could reflect a small amount of magnetic pyrrhotite disseminated within them.

A distinct east to west trending break is visible in the north half of the grid, dividing generally lower magnetic values in the south from higher ones in the north, the absolute difference in values being between 75 and 200 nT. The higher values coincide with another unit of quartzose metasediments and again probably reflect the presence of some disseminated pyrrhotite.

An east-west trending series of discontinuous weak highs is present between the two zones of elevated values and probably again reflects the presence of pyrrhotite in a unit of quartzose metasediments that may project through here. Finally, two very weak and discontinuous northwesterly trending magnetic highs superimposed on the above bedding-parallel trends may reflect the presence of narrow diabase dykes.

INTERPRETATION AND CONCLUSIONS

A series of weak, bedding-parallel magnetic highs on the Crescent Lake grid probably reflect the presence of weakly magnetic disseminated pyrrhotite in a series of quartzose metasedimentary units within a section otherwise dominated by apparently non-magnetic mafic volcanic rocks. There are no stronger magnetic anomalies that could be associated with ultramafic intrusions similar to others in the general area with which Cu-Ni-PGE mineralization is associated.

Staargaard Geological Inc.Magnetic Survey - Crescent Lake Proper!"

lithic Resources LtdJanuary 8, 2003

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Ta-bearing pegmatite dykes are not likely to have a discernible magnetic expression. Further work aimed at locating such dykes should consist of grid-based prospecting and geological mapping.

RECOMMENDATIONS

The grid should be used to control geological mapping and prospecting aimed at locating new Ta- bearing pegmatite bodies.

REFERENCES

Mccrindle, W. and Lewis, M.P., 2001: Bertand Resources Ltd. - Swole Lake Property, Ontario, NTS 42L/5 - Geological and Prospecting, 13p.

Ontario Geological Survey, 1991: Bedrock Geology of Ontario, west-central sheet; Ontario Geological Survey Map 2542; scale 1:1,000,000

Pye, E.G., 1968: Geology of the Crescent Lake Area; Ontario Department of Mines Geological Report 55; 72p.

Taylor, R.P., 2001: Mineralogical Notes, Beriand Resources Property, Northern Ontario; report commissioned by Beriand Resources Ltd.; 6p.

Staargeerd Geological (neMagnetic Survey - Crescent Lake Property

Lithic Resources Ltd.January 8,2003

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CERTIftCATE

l, C.F. Staargaard, of 1470 Doran Road, North Vancouver, B.C., hereby certify that:

a) l am a consulting geologist with offices at 912-510 West Hastings St., Vancouver, B.C.

b) l have the following degrees:

1977 B.Sc. Geology The Pennsylvania State University

1981 M.Sc. Geochemistry Queen's University, Kingston, Ontario

c) l am a member in good standing of the Association of Professional Engineers and Geoscientists of British Columbia, a Fellow of the Society of Economic Geologists and a member of the Society for Geology Applied to Mineral Deposits.

d) l have been continuously employed in mineral exploration since 1979 and seasonally since 1975.

e) l have read National Instrument 43-101 and Form 43-101F1, and this report has been prepared in compliance with the Instrument and Form 43-101F1. l am a qualified pereon for the purposes of the Instrument.

f) This document is based on information in the files of Lithic Resources Ltd. and various published sources, l have not visited the Crescent Lake property.

g) l am not aware of any material fact or material change with respect to the subject matter of the technical report which is not reflected in the technical report, the omission to disclose which makes the technical report misleading.

h) l am a principal in Lithic Resources Ltd.

Dated this ^ day of ^lAx*jiAAft.V 2002 in Vancouver, B.C.

C.F. Staargaard, M.SC.,P.GM.\.s TF

Staargasrd Geotogtca! !ncMagnetic Survey - Crescent Lake Property

Lithic Resources Ltd.January e, 2003

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ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Work Report Summary

Transaction No: W0340. 00419 Status: APPROVED

Recording Date: 2003-JAN-10 Work Done from: 2002-DEC-03

Approval Date: 2003-MAR-1 8 to: 2003-JAN-04

Client(s):

303548 LITHIC RESOURCES LTD.

400275 NINETY-NINE RESOURCES LTD.

Survey Type(s):

LC MAG

Work Report Details:

Claim#

TB

TB

TB

TB

TB

TB

TB

TB

TB

TB

1238090

1239892

1239897

1239898

1248064

1248065

1248066

1248067

1248069

1248070

PerformSO

SO

soSO

5300

51,500

513,735

52,500

S250

S250

518,535

External Credits:

Perform Approve

SO

SO

soso

S300

51,500

513,735

52,500

S250

S250

518,535

SO

Applied

S5.925

56,210

54,800

S 1,600

50

SO

SO

50

SO

SO

518,535

Applied Approve

55,925

56,210

54,800

51,600

SO

SO

SO

SO

SO

SO

518,535

Assign Reserve Assign Approve Reserve Approve

SO

sososo

5300

S1.500 1

513,735 13

52,500 2

5250

S250

518,535 518

0

0

0

0

300

,500

,735

,500

250

250

,535

SO

SO

SO

SO

50

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

SOSO

SO

soSO

50

Due Date2003-JAN-10 E

2003-JAN-10E

2003-DEC-13

2003-DEC-13

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

2003-DEC-06

Reserve:SO Reserve of Work

SO Total

Report*: W0340.0041 9

Remaining

Status of claim is based on information currently on record.

42L05NW2014 2.25188 JUNIOR LAKE 900

2003-Mar-20 15:50 Armstrong^} Page 1 of 1

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Ministry ofNorthern Developmentand Mines

Date:2003-MAR-18

Ministere du Developpement du Nord etdes Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

LITHIC RESOURCES LTD.510 WEST HASTINGS STREETSUITE 912VANCOUVER, BRITISH COLUMBIAV6B1L8 CANADA

Tel: (888) 415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2.25188 Transaction Number(s): W0340.00419

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

PLEASE NOTE: The original transaction W0340.00034, recorded on January 10, 2003, has been deleted to correct an administrative error and has been replaced by transaction W0340.00419. Please make note of this change in your records and l apologize for any inconvenience.

If you have any question regarding this correspondence, please contact [email protected] or by phone at (705) 670-5856.

Yours Sincerely,

BRUCE GATES by email at

Ron GashinskiSenior Manager, Mining Lands Section

Gc: Resident Geologist

Lithic Resources Ltd. (Claim Holder)

Assessment File Library

Lithic Resources Ltd. (Assessment Office)

Ninety-Nine Resources Ltd. (Claim Holder)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18100

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CANADA WOVHBUU. HIRIM \*, A H A UA HKOROBW OWCB

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General fnformation and Limitations

CrtiMi, Alia Mtitotri kind lunuM and liiJ ir^wihal wutftet st wtihibM lw* witry loaktixi nirii'ttJ

Date l Time of Issue: Tue Mar 18 13:35:46 EST 2003

TOWNSHIP i AREA PLAN JUNIOR LAKE AREA G-0057

ADMINISTRATIVE DISTRICTS ; DIVISIONS

Mining Division Thunder BayLand Titles/Registry Division THUNDER BAYMinistry of Natural Resources District NIPIGON

TOPOGRAPHIC Land Tenure

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LAND TENURE WITHDRAWALS

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i? 7 *oos12480641248065

W 4***

1248066 1248070

42L05IW2014 2.25188 JUNIOR LAKE210

O l

100 200 l

300 l

400 _l

METRES

.25188

magnetic values in nT contoured at 50 nt intervals

logging road (approximate)

LITHIC RESOURCESCrescent Lake Property

Thunderbay District, Ontario

Contoured Total Field Magnetics

StaargaardGeological

Date: Jan 2003

File: CL Mag Figure 5