SCHEDULE & PROGRAM FOR FEASIBILITY STUDY RPT DOME TWP

63 H

52N04SWe062 63.3611 DOME TWP 010

BONANZA RED LAKE EXPLORATIONS INC.

SCHEDULE AND PROGRAM FOR FEASIBILITY STUDY

GOLD PROSPECT, DOME TOWNSHIP

RED LAKE, ONTARIO

JANUARY 1 5, 1979 HARPER CONSULTING SERVICES INC


SCHEDULE AND PROGRAM FOR FEASIBILITY STUDY

GOLD PROSPECT, DOME TOWNSHIP

RED LAKE, ONTARIO

INTRODUCTION

The purpose of this report is to schedule and program

the acquisition of the data necessary for a Feasibility Study

of the Corporation's known body of gold mineralization located

on White Horse Island, Dome Township, Red Lake, Ontario.

PERIOD l - January l to April 30, 1979(4 months)

A. AT RED LAKE

1. Initial examination of shaft collar condition.

- capped? - open? - caved?

2. Opening discussions with local Ontario Mine Inspector

on permit requirements, safety, etc., with respect

to re-collaring shaft and de-watering mine.

3. Opening discussions with local hydro authorities re

establishing a power sub-station on White Horse

Island.

'1 . l'!ii(|ii i r i t '-:: M :: ID :i v:i i l M It l l i l v "l w;i l i- r l r:i nr;ju i r l :i l i DII

o T a .s i x e suitable for transporting mining equipment.

f). Enquiries fi.s to docking and load i up," facilities

on While Horse Island and at Red Lake.

B. IN TORONTO

1. Opening discussions with Mines Inspection Branch,

Queen's Park.

2. Opening discussions with Ontario Hydro re power

sub-station.

3. Opening discussions with Ontario Ministry of En

vironment respecting control of mine discharge

water.

4. Opening discussions with Mining Corporation of

Canada (Noranda), Kilborn Engineering, etc., with

respect to undertaking Feasibility Study as a Con

sultant or as a Consultant Participant in

(a) Ore Reserve Calculations,

(b) Mine Viability Study as a salvage or as a

continuing operation,

(c) Mine re-habilitation study,

(d) Production potential.

PERIOD 2 May l to June 30, 1979 (2 months)

A. AT I?KI) l,A K M

1. Complete 1979 drill program from ire

2. Consider cementing any drill hole location found

on White Horse Island.

3. With snow and ice gone accurate evaluations can be

made respecting

(a) condition of shaft collar,

(b) docking and beaching fcir.il i t, ins on White Horse-

Is] and ,

(c) condition and repair needed to roads between

docks, shaft, power sub-station, building sites,

etc .

B. IN TORONTO

1. Calculation of tonnage and grade including results

of 1979 drill program.

2. Development of underground exploration program.

i.e. grouting, bulk sampling, underground drilling.

3. Board of Directors decision to proceed with full

scale Feasibility Study under Company control OR

under the control of a fully integrated Engineering

Consulting firm.

From this point it becomes increasingly difficult to

correctly project the progress of the Feasibility Study for one

Ciiliilii! (ire del cfiii l ne MIC :;|ii'i'i| w l l h which il;it;i r;in \ n- ; irriimii l nl.rd

If, as is probably the best course of action, the Corporation

,

retains a fully integrated Engineering Consulting Firm to carry

out the Feasibility Study then the Corporation should retain

the services of a Consulting Geologist and M Consulting Mining

Engineer who can supply overall direction to the integrated

Consulting Firm and act as intermediaries with the Board of

Directors. In short, if a system of technical controls and

checks is not instituted, the Corporation may find itself with

out quick and positive direction and the cost of studies may

mount solely because of indecision.

PERIOD 3 - July l to November 1 5, 1979(4.5 months)

A. AT RED LAKE

1. Prepare docking and beaching facilities on White

Horse Island suitable for off-loading supplies

and equipment.

2. Arrange for required water transportation.

3. Design and erection of needed facilities,

e.g. power sub-station, shaft collar, head frame,

etc.

(The above may be deferred until after freeze-up.)

B. IN TORONTO

1. Assembly of cost estimates respecting the; following:

a. re-collaring shaft;

(b) installation of head frame, hoist, etc.;

(c) installation of power sub-station and

roMMC'ct. i on t.o mining plant;

(d) de-watering and mine re-habilitation (ladderways,

timbers, guides, track, signal systems, etc.);

(e) underground mapping, sampling, bulk sampling,

diamond drilling, grouting, etc.

2. Open discussions respecting conditional financing.

3. Open discussions with Red Lake gold mill owners

respecting rental of facilities for custom milling.

4. Investigate the alternatives of mining and developing

through the existing shaft OR through a new decline

entry on Cable Point. The latter would reduce ore

handling charges and permit easier year round

operations.

The data comprising the Feasibility Study will be col

lected by different people at different times and unless there

is a systematic collection and storage of data there will be much

useless repetition and delay. Data stored in people's heads is

not readily available to a group of people.

A typical field report, particularly near the start of

the feasibility work, might consist of a semi-formal letter re-

porling on Ilir .stale of t he sim ft. collar, the dock, and an un

successful attempt to meet the local Mine Inspector, and some

two or three other items. As the number of such reports in

creases, a particular item becomes increasingly hard to find

among a stack of small reports and repetition results. The

answer is to maintain a Data Accumulation Brief.

A Data Accumulation Brief is maintained in chronological

order and indexed according to subject. Typical index headings

are :

Shaft CollarTransportation Facilities Docking and Loading Facilities Power Sub-station Environmental Requirements etc .

To prepare a Data Accumulation Brief is relatively simple.

Data from a letter report would be briefly summarized under the

appropriate headings together with the date and author of the

source report. A report on a specific subject would be included

in its entirety. The form of the Data Accumulation Brief is that

of a loose leaf notebook and its contents, in total or in part,

can be quickly reproduced for the convenience of someone engaged

in a specialized part of the Feasibility Study. The Data Accumu

lation Brief is, in actuality, Volume I of the Feasibility Study.

Unless instructions to the contrary are received, it is

the writer's intention to start a Data Accumulation Brief.

Respectfully submitted

mNfwi/rrNci sKuvirrir: INC.

Willowdale, Ontario H/ G. Harper, -P.ftng. January 15, 1979 President.

......... t .in m man 11 llll5aN84SW0062 63.36It DOME TWP

020

A? rv? f

BONANZA RED LAKE EXPLORATIONS LTD.

ELECTROMAGNETIC, MAGNETIC, ft GRADIENT SURVEYS

DOME TOWNSHIP, RED LAKE, ONTARIO

APRIL 1 2, \[)'7 'j"ARPER CONSULTING SERVICES

INC.

BONANZA RED T.AKTC EXPLORATIONS LTD.

KU'X'TKOMAGNKTK 1 , MAGIMKTir, X. (iKAD l KIMT NMRVKYN

DOMK TOWNSHIP, RKI) l,AKI',', ONTARIO

INTRODUCTION

Some experimental geophysical surveying has been done

over and about the known area of gold mineralization near White

Horse Island on a property under option to Bonanza Red Lake

Explorations Inc. The surveys were done from the ice surface

between January and April 1979. The surveys done were a Total

Field Magnetic survey, a Magnetic Gradient survey, and a VLF

E]ectromagneta c survey. The Magnetic Gradient survey was limited

to the water areas as the land areas are topographically too

uneven to permit reliable Magnetic Gradient surveying. All

surveys were limited by the transmission line of Ontario Hydro

which crosses part of the land and water areas within the

survey. The area surveyed is confined to portions of three

claims (KRL 11325, 111/12, fc 13251) and cover about 80 acres.

Previous geophysical surveying in the area is almost

nonexistent.

Some 35 to 40 years ago some magnetic surveying was

done near the shaft. A magnetic contour map exists today but

i l show.1 -; lin re;i d i nj'.s or contour interval :ind i .s considered

rodund;i n l, . In Mie middle I'MiO's some 1 ma.gnel, i c surveying was

rdone under the direction of R. A. Ferguson who was then

gathering data in preparation for his report G. R. -15 for the

Ontario Ministry of Natural Resources.

PURPOSE OF THE SURVEYS

The survey work was pxpor i men l,a l , - designed t,o search

for geophysical peculiarities in the vicinity of the known

gold mineralization and to see if these extended to the north

or south of the known gold mineralization.

SURVEY RESULTS fe INTERPRETATION

MAGNETIC GRADIENT SURVEY

Data for this survey is acquired by calculating the

'difference (positive or negative) between two magnetic readings

i at each station; the first reading taken four feet above ground

i levej. and the second eight feet above ground level. The calculated

(result enhances magnetic changes and has been found useful in

:areas of flat topography where the bedrock features are deep.f ,:buried and relatively smooth.

.' j ;

i 'I'll' ' l i r; i 11 i i Mi l : :n rv - v \v.-i: : l i m i l - -i l l . ) l li i - i . -. - i . , v - i - 11 | K . ri

;j(, ion of t li r: lake lying (.-M,s l. of Wliil.e Horse Islimd. No gradient

features of significance are distinguishable and the survey

results appear to be of minor value.

TOTAL F T ELD MAGNETIC SURVEY

Tt is quite clear I'rom the survey results t,hat the

Pome Slock has a genera My higher magnetic, level l hail the

intruded volcanics and sediments, although coach formational

group contains relatively small, isolated bodies that are

; strongly magnetic. The survey does not define the contact

i between the Pome Stock and the intruded rocks with precision

but one can make a reasonable inference as to its location.

VLF ELECTROMAGNETIC SURVEY

This survey is characterized by extremely wide fluc

tuation in the in phase and quadrature readings that are much

greater than normally experienced. One may infer that all of

the rocks in j;h.e survey area contain many small, discontinuous

but highly'conductive faults, fractures and seams which must

; strike in several different directions.f

,-A strong conductor, "A", strikes north-south and lies

' about ;400 feet east of the shaft. This is the fault zone inter-

: sected in drill hole H79-1 . Tt extends from 5S, the south limit

i i ' (' l li i - : -li rv i '\ , li' l i Hi - IN when- li l M -ci lin' -: : i -i im| i H i' a l i -i l anil l : :i

|'; lost - possibly terminated.

A second '/.otic o l .si. rong concluc l i v i l y l i os north of

Wh i l.o llorso Island bel.woon linos 4N and ION and west of the

baseline. This area lies within the Dome Stock and is not an

5extension of Conductor A. There is no simple, obvious expla

nation for this conductive zone.

COLLECTIVE RESULTS

All three surveys indicate unusual, but unde f i na.bl e ,

conditions between lines 4N and ION. Individually the unusual

survey results are not exceptionally intriguing but collectively

the results arouse curiousity particularly since many problems

begin near line -IN. For example, the water flow along a

diorite dike intersected on the second level of the mine occurs

at line 3N; the overburden thickens and drill holes are lost in

overburden at line 4N; and finally, no holes have been completed

north of line 4N when collared on a westerly bearing. The

writer suspects a major fault-fracture system lying between

lines 4N and ION and this inhibits diamond drill investigation

of the area. Perhaps the best policy is to start cross sectional

drilling north of line ION and then advance southerly.

CONCLUSIONS fe RECOMMENDATIONS

1. The surveys do riot reveal ;iny spec i a. l conditions related

to the known gold mineralization which can be projected

along strike and which can serve as a control or guide for

f i j l u r r' ri r i l l p rog r;irns .

The surveys suggest, sonic- form of east-west, trending

discontinuity occuring between lines 4N and ION. This

suggests thnt a future1 drill program should start, wit,h

cross sectional dri!ling along l ines "MN or l6N and then

progress southward.

Respectfully submitted

HARPER CONSULTING SERVICES INC.

Willowdale, Ontario April 12, 1979

H. G. Harper, P. 'En g. Presi dent.

52N84SWW62 63.3611 DOME 030

ft ZAP

BONANZA RED LAKE EXPLORATIONS INC

1979 DRILL PROGRAM

DOME TOWNSHIP, RED LAKE

ONTARIO

MAY 18, 1979 HARPER CONSULTING SERVICES INC.


1979 DRILL PROGRAM

DOME TOWNSHIP, RED LAKE

ONTARIO

INTRODUCTION

Bonanza Red Lake Explorations Inc. has just completed

a diamond drill program on its Dome Township gold prospect

and this Report summarizes the results of that program and

makes recommendations for future exploration. All details

pertaining to the drilling are recorded on the drill logs,

drill sections, and drill plan which accompanies this Report.

PREVIOUS DRILL PROGRAMS vs CURRENT DRILL PROGRAM

The partially developed bodies of gold mineralization

lie entirely under the water of Red Lake and therefore are

awkward to drill except when the lake is frozen. Consequently

many of the holes have been drilled on divers bearings from

White Horse Island, all of which makes correlation of drill

results difficult. A further complication has been the thick

bouldery overburden conditions under the waters of Red Lake

and, in the past, several holes drilled from the ice failed to

reach bedrock. For example, in 1939 Mackenzie Red Lake Gold

Mines Ltd. held an option on this property and planned a drill

program very similar to the current one. Holes were drilled

into the mineralized area from the ice on Red Lake. Holes l to

4 inclusive intersected the zone approximately on current sec

tions O to 3N inclusive and returned respectable gold values

across reasonable widths. The next eight drill holes failed

to penetrate the overburden and the drill program was abandoned.

The current drill program progressed slowly because of the same

problems. Only one drill hole was abandoned and two holes did

succeed in reaching bedrock where the earlier drilling failed.

The difficult overburden problem slowed the drilling to the

extent that the planned program could not be completed before

the ice weakened, forcing a drill stoppage.

DRILL RESULTS

Five holes B79-1 to 5 inclusive were completed and one

hole, not numbered, failed to reach bedrock and was abandoned.

All holes were cemented when completed.

The best intersection occurred in hole B79-1, where

17.02 feet averaged 0.159 ounces of gold per ton. Lower values

occurred both above and below this intersection.

Holes B79-2 and B79-4 were drilled on Line 4N in the

approximate area where Mackenzie Red Lake lost four drill holes

in 1939. Neither hole intersected a gold bearing vein. An

analysis of all available drill and underground data indicates

that the vein system is readily traceable to approximately Line

4N where suddenly all is gone. This is also the area where

overburden problems begin. An examination of the geophysical

survey data (see Report dated April 12, 1979) shows that all

magnetic and electromagnetic data undergoes a marked change in

this area, but the nature of the change is unknown. A wide

erratic shear zone seems the most likely explanation. A better

interpretation might be possible if north-south VLF surveying

was done in this area. Meanwhile, all drilling should keep

away from this area and move to the north where the geophysical

indications are more normal.

Hole B79-3 intersected some interesting veining on Line

IN below the 350 foot level. Low gold values were widespread,

the best assay being 0.31 ounces of gold across 1.5 feet. The

data suggests that the oreshoots have a plunge, probably to the

north.

Hole B79-5 was disappointing in that only low gold values

occurred in a very wide and good looking vein intersection. The

best value was 0.08 ounces across 3.0 feet with the vein having

an overall core length of twenty-one feet. The vein was inter

sected at a horizon lying between the 275 and 350 foot levels

where earlier drilling shows respectable values above the 275

foot level.

FUTURE DRILLING

The geophysical hiatus occuring between Lines 3N and

8N has never been bridged by diamond drilling. It was the in

tention of the Mackenzie Red Lake program to cover this area

but it was not possible to carry it out. Indeed, they lost

four holes (see map) in the attempt. Also, they were not aware

of the geophysical discontinuity. The logical course of action

is for the next drill program to commence with cross sectional

drilling north of the discontinuity, say about Line ION, and

then move southward.

CONCLUSIONS AND RECOMMENDATIONS

1. The 1979 Drill Program and its related Geophysical

Program has provided some data on which future ex

ploration can be based.

2. It is apparent that the known ore shoots have a plunge

and the direction of this plunge should be established

by further drilling.

,

3. To the north, the drilling has encountered difficulties

because of thick and boulder rich overburden, and due

to a geological change of an uncertain nature as indi

cated by the geophysics. Probably the best solution is

to start drilling from the north, say Line ION, and

work south.

4. The known gold mineralization has not been traced south

of the shaft according to the old drill records. One

or two wildcat holes south of the shaft are amply

warranted.

5. A new claim was staked which squares out the east bound

ary of the Company's property. Sufficient drilling

(a 300 foot hole) should be done to bring this claim

to Lease.

6. The drill program for the 1980 winter season would

approximate 3500 feet and cost about 380,000.00.

This Report is respectfully submitted.

HARPER CONSULTING SERVICES INC.

fo r A* r.

WILLOWDALE, Ontario H. G. Harper, P.Eng. May 18th, 1979 President.

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BONANZA RED LAKE EXPLORATIONS INCDOME TWP. - RED LAKE, ONTARfO

Electromagnetic Survey

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BONANZA RED LAKE EXPLORATIONS INCDOME TWP. - RED LAKE, ONTARIO

MAGNETIC GRADIENT SURVEYGeometrics Proton Magnetometer G8I6

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SCHEDULE & PROGRAM FOR FEASIBILITY STUDY RPT DOME TWP

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