/^vr:-? ;' ^j'?; ^-^v^iiy

42C08SW0218 FINAN39C1 FINAN 010 POOR QUALITY ORIGIN tOFOLLOW

ROSSLAND,B.C., July 2 , 1919.

REPORT ON THE MCCARTHY - WEBB GROUP.

GOODREAU. ONTARIO.

PROPERTY:

There are seven claims in the group, Kos. 2048, 2049, 2050,

2051,2053,2101,2052.

LOCATION:

The claims are situated in the Algoma District, Sault Ste.

Marie, Mining division, Province of Ontario, and are about one mile

east from the Nicholas Chemical Comapny's property at Goodreau. A

standard gauge spur operated by the Chemical Company has been built

from the main line of the Algoma Central Railway at Goodreau to with

in half a mile of the property.

GEOLOGY S VEINS:

The rock formation consists largely of light gray quartz

felspar porphyry. The porphyry varies from a massive structure to a

schistose one, and can be traced along the strike east and west for

several claims. The dip is north at probably 60". On claim 2050

there are three distinct parallel ridges and on these ridges, stringers

of quartz are found, varying from a few inches to eight feet wide, and

it is in these stringers the values appear to be carried.

East and west from this group there are very large deposits

yOfJC^o ^ O- J-J-Jiit-J.'J.Xitt.'A

'o;K.-A lo-r- i:.('J-;Q ofj. O'.ouf -vo.; TJ

TJ p c o t*.", uo T

^. /A prra ^,T*{

^ 3~C3UT.*-1C3 O S O l r* U? CT T'

x^jm 'puuoj O.PJ 31^,^^ 50

0^03 tUTtJtO UO - 09v . - -- . -'o

' pire

ST ciTP

: of iron pyrites and there is strong evidence that similar deposits

exist on this group. g ifc^B l O AT P

,* POOR QUALITY ORIGINALWORK: TO FOLLOW

Trenching and stripping has been carried on at various

places on the group and has demonstrated that stringers of quartz

and bunches of pyrites are spread over a great width.

TIMBER S POWER;

There is no timber on the cliams for mining purposes and

provided and option be obtained on the group electrical power could

probably be transmitted from the Algoma Power Company plant about

fourteen miles from Goodreau.

CONCLUSION;

In view of the favourable location of this group as re

gards transportation and power, together with the values obtained

over fair width, I would recommend that an option be taken, pro

vided satisfactory arrangements can be made and if such can be

accomplished I suggest that claims 2048, 2052, 2053 and 2102 be

dropped as I do not consider they have anything to merit them

other than probable pyrite bodies, and include- along with the

three remaining claims of the group numbers 2062, 2063 owned by

Webb and associate. I would further suggest that three diamond

drill holes be bored at a minus angle to cross cut the three rid

ges on claim 2050, one of these holes to be bored under the sec

tion showing the highest values and the other two, say, 500 feet

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apart, These holes should cross cut the three ridges 200 feet

below the surface.

It is just probable that low values may be obtained

for considerable widths on these ridges, therefore it would be

advisable in the event of diamond drilling to assay all the

core in, say, three foot sections.

DUPLICATE COPPOOR QUALITY ORIGINA,

TO FOLLOW

nj* - — - -1 — 4 t . '. . v . : -. -i* L--I " i - j 'i .,- - - ^fi "'it wtiia "bo ".-' ft;^ '''f o r c ons i de r aje

advioafcle in the cTeint of

l"REPORT ON OPERATIONS AT THE

~- UCMl CMCCARTHY-WEBB PROPERTY FOR RO()R ^^ QR|Q|NA|

MONTH OF AUG" 1931 - TO FOLLOW

Goudreau, Ontario, Sept. 14th, 1931,

G.H. Kilburn, Esq., Trail, B.C.

Dear Sir:I beg to submit the following report

on our operations at the McCarthy-Webb Property, Goudreau, Ontario, during the month of August.

Under separate cover I am mailing a tracing of the assay plan, a general plan and tracings of the sections showing the diamond drill holes (those for which we have records).

Sampling was continued throughout th month on the same scale as before. A much greater amoung of trenching was found necessary as fcrenehin sampling proceeded so that progress was slow. However we have found it impossible to lay out much work in advance of day to day assay returns without running a great chance of performing a lot of useless work so we have not attampted to increase our crew.

Sampling on the so-called high grade vein was extended as assay returns encouraged us and some results are yet to come but pick it up on the east side of the diabase dike without success. There is an unknown amount of displacement due to faulting on the dike but apparently it is not great. However the country to the east of it is generally heavy overburdened and any further surface work there would be very expensive.

There is now no doubt that the high vein is continous across the draw between departures 3200 and 3300 but assay results are pretty low. However there are more to come and I would prefei to withold further discussion until these are received.

At the present moment we are engaged in exposing and sampling a very promising appearing quartz vein which we have just discovered. Pannings from it are encouraging but no results are available yet. It is about 122 in width and lies parallel to the northernmost of the two andesite dikes shown on the plan and about 30 feet south of it.

About ten day's work will accomplish all that can be done on this vein without undue expense.

Yours truly

H. O'R. Dyer,

MCCARTHY-WEBS '"""MONTH QF :AUff.i

'S't' -1--

ft:-

G. K. KilburhiTrail, B.; C. ; , ' ' ; ;;'

Dear Sir : . , ,

I beg to submit, the following'

aeaay'plaripa' general'-plan*and 1''tracingfliN;- -'- - ' - ' - - - ' '

slow.' However.'we" have found iV-impossibleadvance of day'-to'day'essay returns..-without' running : ; siVi,- .,*-. ,of -oerforming-a'.lotvof useless work so* we 4iare n6t^attempt,e|^bo:^

' " '' •k i 'f rf\' ' ' - i * ' ^ ' ' r 'L- J " ' l' J9 t 1 *' ' * 'l * * l t ~'i ft 'f ' * -*- 4 t * *f*?U'*\" J3fcv*lSuCf'increase .our/crew.fi ^:: .'i.:.; 1 ;?.-:.:'/ VyV.';-.'^.'*^ 1 *".'-.-; V^(^Sfs^#^K g " ', j- ; . \^V Sampling' oh the \ a pr .palled' high grade;;Vein w^^r* as assay retuVnB^iencjouraged -us? ahd 'Bbm^^reBultB^^re'^t^p^ v e ry ,vl i it l e; more' c an/ b'e '\. d one on i t n owV-YAn iit t eiapt w^/ma^t pick ;; ii^'up^.6n ;th^Ve^8t?jBi'de^^i s an unknown amount of di splao emeht 'due . t b' f ault i ngs on * but aj pareLtly -it IB not great.''-.However rthe^''country 4 0!;' of it is generally heavy overburdened and any further 1 there would be very expensive, - - , : - -' . -'-,, '"'.r'; "';v ': '.'ifc

' T here is now no doubt that the high vein is continous ' : ;''v across the draw between departures 3200 and 3300 but assay results ,. are pretty low. However there are more to come and I would prefer;to withold' further discussion until these are received* - ; ,. - -' ;

, At the present moment we are engaged in exposing- and . V..- sampling a very promising p.ppearing quartz vein-which we have'Just^.*- discovered. Pannings from it are encouraging but no results.are, ' /" av&ilable yet. Tt is about 12R in v.idth and lies parallel'to' the.''"'v; northernmost of the two andesite dikes shown on the plan and about 30 f( 3t south of it. .'. :

About ten day's work will accomplish nil that can be done on thie vein without undue expense-

Youro truly,

H. 'i':'i. Dyer.

Ifw^-'^ ;s'vW vr ~- fcKffr.^; ,--. 42C88SW8218 F lNAN39C1 FINAN 020

f

GEOLOGICAL AND GENERAL REPORT ON OPERATIONS TO DATE SEPT. 14, 1931. ON THE MCCARTHY-WEBB PROPERTY.

Goudreau, Ontario, Sept. 14th, 1931,

COPYPOOR QUAUTY ORIGINAL

TO FOLLOW

G.H. Kilburn, Esq.,

Trail, B.C.

Dear Sir : ,^,

I beg to submit the following report

dealing with the Geology of and our operations to date on the

McCarthy-Webb Property, Goudreau, Ontario.

The country rocks of the Goudreau Area are largely

Keewatin volcanics. These are intruded by dikes, bosses etc. ofi

quartz felspar porphyry and other acid intrusives. Intruding all of

these is a series of olivine and quartz diabase dikes and a series

of smaller dikes of mica diorite.

The country rocks outcropping on the McCarthy-Webb

are greenstones and what is generally thought to be a quartz felspar

porphyry although it if to be noted that Ellis Thompson identified

this rock from a thin section, made from a specimen selected by

ourselves, as an acid volcanic tuff. The contact of these two rocks

passes through the centre of the property in a northwesterly

direction and dips at a steep angle to the north. The greenstone

at the contact has been altered to a chlorite schist for some distance

back from it. It is scantily mineralized with pyrite but sampling

results from the greenstone side have been low. Neither do good

values appear to occur in that portion of the porphyry which is

is close to the contact although our results do not indicate this

JMsN^vifcc..*ji?v;.7??" j?,-*'.*9?vy*f-' 1 v^:--'*--v ^vydlJH - - •••r • ''***

G.'H. 'Kilburn, Esq., ,

Trail, B. C. ;;.: :

Dear Sir t -i V '-./•••-•''j-' -'''..'-.V' *'\ - '-'5. -..--''ji*-: ''- -' -1.'.'"^ ;-'r - -'"'- 1''.-" ' '- :'.' :' ' /•'^••'v-.v r : -*. ;.f ' V'i\jv'v.?'-,'.''"'

- l- ' ' '' -•^"Vv 5' A i - .± - --' •*'','-, ..-1;'"'v*-'-ir O - .--...y i "l; -.- v'-'v j-" .^"- *- -". -' ' ' - - ; ' ' ' -- ( - -''-- -- , p" ; ''i-'^i^S^jJ^fc- i-v.---.-'-. '•'••"*\'.? -' '* : -'-"it- i'5*,"i jt"V." - 1 '."';, -i..' ; -S- ^^-'•^:^;•i1.i' ^\'.-: ' 'V.V.V. .* ' J.^.i'i.t;^ *~ : .•'iiYSttf Si'^i-K*''

A p el 1 nfrViH +V '4\,A .n*nTnmr'f\'r u VV/1 -.fAiiY*? rtVsavo'*-* 'nW*' 1 ^ X ;-'*l Df a '.lXv* *"V. *n ;rf 'VJVMi'i'A-1

; V. iJ:

Keewatin volcanicB.-iTheBe are intruded;by.dikes,' bosses;n

quartz^;

these

of smaller

The country rp'o'ka ioutcropping 'on the

are greenstones and *hat is generally thougt to be a quartz felspar

porphyry although it Is to be noted-that Kllis Thonpson identified

this rock from a thin sectionjmade from a specimen selected by

ourselves,as an acid volcanic tuff. The contact of these two rocks

passes through the centre of the property in a northwesterly

direction and dips at a steep angle to the north. The greenstoneschirt

[;t the contact has been altered to a chlor? te/f cr some distance-

back from it. It is scantily .-niner-Ui zed v.ith pyrite but s;ur.pling

results from the greenstone side hr.ve been low. Neither do go^d

values appear to occur in that portly of the porphyry which is

r: o c" one to the cont-.ct altncu^h our results do no: "'ndicate thi i ;

PLICATE COPY(2) X50R QUAUTY ORIGINAL.

conclusively. Porphyry and greenstones extend respecti1

north and south of the contact for unknovm distances although it

would appear that this particular body of porphyry is about a

thousand feet in width. The south contact can be traced for more

than two miles to the east but its westerly extent is unknown.

A pyrite deposit, believed commercially important, lies

in the greenstone south of the south shore of Webb Lake on the

south boundary of the McCarthy-Webb and probably dips into the

latter at depth.

A large diabase dike around 50 feet wide cuts across

the east end of the area covered by the assay plan in a direction

about N 30 W. It is very persistent and can be traced across country

in either direction for several miles. Some displacement northward

due to faulting on this dike has been noted on its east side but it

is probably not over 200 feet.

Through the centre of the assay map area two dikes

(or branches of the same one) determined by Thompson as andesite

porphyrite, have been intruded. They are from a few inches to 10 feet

in width. The appearance of their weathered surface is almost

identical with that of the porphyry and their existence was only

discovered a few weeks ago. Another of these has been noted on

claim 2051 near the government road.

Numbers of shear zones traverse greenstones and

porphyry in a direction varying from N 60 E to S60 E. The intensity

of shearing in the porphyry is in general not great and individuals

are poorly defined and rarely over 3 feet wide. Along planes of

foliation and shearing the porphyry has been partially altered

to serecite schist containg very minor amounts of ankerite. These

shears vary greatly in dip locally but average to about 70 north.

y; -f -'"f: .- '.i

•- A . v . '- ••'••f rv*/-^'^1* Sjy^v;^r?-*Ni-? V? i^'Vi-'-' *i^f^^^^y^^^^yrF ^^^;'^^.'^^ffjy! f;:'f. -A/pyrite' deposit i-belieTed^commercialWimpprtant F?li esp*--. : :" •''.'•s '" ; . .'- .':- '^ ', •••. V-' ; '" v'^ , ;-.' ^•.•?V'H'# ' '•'T'-^.v^. vvji'v-'i,. '\ J ''-i; ^ V^-V^'*'-*-XVy -- : ' - ,- V-.,-. ^- •-.i-'.'-.-v*- . •••v.- - . *-. -... ,-, ..'v .•^•y^'iv.'"'.' '-V-. - ••:;.\?: Jt.;-v.'i .--.^ ,;. j, ,v, s,, ^--f-j ;-V{ -"

in the greenstone r '8outh of the south. Jihofe of .Ve"b"b Lake : 'ori'tne\;'^*.v J -^ v v;y;.. ^-'.?^v;-^ ' -" "' r^v? -^^^r^'/j ^.--^^ ^;--^^:^;.;.-x^.f ..* * *- t*-.' .-^ A.J *. ^ '**^**--,A*^.- *tr^^-*- —^J,*^—-^^^^—' JJ—.— •'•J fc-A'L 1*i\-. J. -'. 1t -* 1 ^ -..-*. ,-. -

: :r *''

X'---1 ".:-* -'.- -i-'.' ',: '' r --' -.7" -\',, -^; :-', -r r'-;;^T.-'-.--i-B V.- ,-,;. .T ,-'*i'-.^ •VT't-i'.''^jW^'*V**i.'':

t e j ;'ha\ e" "bc en' 'i trudodi They - Bte -from a ',f ei i nchoe t otO.O.*f e'et- v . - - ' - ' -'. -;^ -;; .^..^'-. v ..-;;"-,;- v. ^--^..^;^^p.~ T};-? appearance of their weathered sorface is almoet" ',* #/.-?'-'.v - - .' -. * p .S V' -' - - : . .* . ^ - - -. '.

(or "b]

porphyrite

in width,

identical with that of the porphyry and their existence was only. " -

discovered a few wet 1-cs ago. Another of these has been noted on

claim 2051 near the government road, , -' ; - v,v\ :

- Numbers of shear zones traverse greenstones and

porphyry in a direction varying from li 60 E to S 50 E. The int nsity

of shearing in the. porphyry is in general not great and individuals i

tire but poorly defined and rarely over 3 feet wide. Along planes

of foliation and shearing the porphyry has been partially altered -p ' * . - *~ ' *

lo oerecite schist containing very rainor amounts of ankerite.'These

••h'.-c. r t-, vary greatly in dip locally "but average to abou. 70 north.

p UPLICATECGPYH i 3 ' hOOR QUALITY ORIGINALt:-" - jc^yjow^ Along and within these shears quartz veinlets from mere "knife-edges"S'? ;'

l to 12" in width have been developed. Narrow stringers of finely

'^ crystalling tourmaline accompany the quartz, lying within it or

alongside it. That is to say this is very frequently the case. Very

often the quartz in a given shear dies out in a short distance

but the tourmaling stringer with it may persist for a considerable

distance and serve as the only guide in following it till opens up

again into a definite quartz veinlet. Very frequently such weak appearingover 4 to 5 foot widths

spots are found to carry undiminished values/although our work shows

clearly that no gold values in excess of 40 cents are found in the

schist outside of the quartz-tourmaline stringers except in odd spots

where the schist have been partially silicified. The quartz of these

veinlets is of the dense finely crystalling variety generally

mottled and stained which is commonly considered as "live". Showings

of coarse visible gold are very frequent in almost any of the stringers.

Pyrite mineralization is scanty and the greater part of the gold

at least appears to be free. The whole surface of porphyry exposed

is almost completely unoxidized so that we believe it unnecessary

to shoot into the weathered surface to obtain reliable sampling

results so that very little blasting has been done and that where

extraordinary conditions were encountered.

Besides the series of veinlets described above with which

we are chiefly concerned th~-re is a second and younger series. These

cut through the older ones in a direction close to due north and

south. These contain masses and stringers of tourmaline to a much

greater extent than the others and contain some showings of coarse

visible gold but do not carry anything approaching commercial

values and are apparently unimportant. They are older than the

. .t.)v sAlong and'within''the se ehear^s'-

.. f "- ' - : - ' - -" -' :'' - -: '.to Ifc* In width h^ye'been

. - -l - 'l-t -.*-~:. y'^-;v^-*v VK-v - cry st allirie'' tourmaline' ft'' ' '

f ,- -". '" alongside 'it. .That lo'tO'cay thit ii'.Tfii^'ff"'-'-jften the quartz in"a given'ehear di^s'^vCv^n^'k^^^; - - ' -. ' ' ;'--^-v"^y*^ '7- :',Y :?f^H-, '*-rt .-^^;often

but the tourmaline springer vi-^h it may'p'eraiBt f or considerable

distance and serve as the only guide in ' 't ollowing it till.bp'ene up* '

again into a definite quartz veinlet^'Very 'frequently' such ' weak/. -Vf.' - - . ' .-over'4 to 5 fo.ot^widths .^^X'vv^--

spots are

at least appears to be free. .

is alnost completely unoxid?

to shoot into the weathered surface to obtain reliable sampling'-' :

results BO that very little blasting has been done and that where

extraordinary conditions were sncountered. ' ' ;

Besides the series of veinlets described above with which'

ve are chiefly concerned there it; a second and younger series. These

cut-through the older ones in a direction clot', to due north and

south. These contain masses and stringers of tourmaline to a much

greater extent than the others and contain 'some showings of coarej

visible gold but do not carry anything approaching commercial

van;"B and arc apparently unir.p .-••ri a nt. Vhcy ,:--ro ylncr thr-.n the

PLICATE COPVv(4) rOOR QUALITY ORIGINAL

TO FOLLOWandesite dikes, being cut and displaced by the latter. They vary in

width from tiny veinlets to 24" wide but are of but short lateral

extent, pinching out at either end in short distances. There seens

to be a rather definite relation between their maximum width and their

length. The quartz is glassy in appearance, stained in spots with

iron.

To get back to a discussion of the older set of veins

it will be observed from the assay and geological plan that these

shears and veinlets strike in various directions, diverging and

converging somewhat in the manner of a stockworks. Sampling results

are somewhat confusing but in general it would appear that the best

values are found at and near the points of convergence of several

converging veinlets. A most unfavourable feature in connection with

these veins from the practical point of view is the difficulty

which obviously would namnifest itself if one attempted to follow

them underground. Sampling would have to be exceedingly close

indeed and even then it seems inevitable that a good deal of waste

development must occur. Local irregularities in dip would further

complicate the problem and how one would avoid a considerable

amount of dilution in stoping is difficult to imagine. Of course

conditions may be more favourable at depth but this seems to me

most unlikely.

At the commencement of our sampling of this property

two years ago our first step was to discover which of the various

veins exposed carried attractive values and whether or not the

values were chiefly contained in the quartz stringer. Results soon

indicated that the values were almost altogether enclosed in them

and it was thought advisable to confine our channeling to the

jSi j* VT^V, : -j v * •f'-^i-n'i?. x** V*,;Y :\-'tv. t yr- w*?* j":;-, ;^?'^ }r, 't&'jiij ^l&^^J&iv&W 8fe'"v*\\?'* ;. ' S^S^tfi^4^^ -fe'^S '^ft^^^WW&S^:^ - ' * an;de8it^dike8hbe*ng\cutf^

Kfiffl!

:.f. ' ~ * * ' fcW UO (,C* A C* Wilt i WVi *it* V B .i* V*.Ck W A V*J l W V TT t t-li llritV** t';UJCVy\, AUUXIU j Tt * l* * Uf y***V \ t****Iff *;t* rf ' 'p^sijip'igp^^^^^^^i^^^;c-' , v ;, length. The quartz'iB glassy lin vtippeafanoef8tal)ledp^p^W^tff®S'i-V --:J v.^.-;- ::;;v,-^^^^n ^-. ^iv,^^V^?^^^.-:-- ' -- iron.'-:".'1--' - '.:-' "' -••'- :'*i' •'••- - : - I* ; ': '-- V * -*'';'w tt-;^®^^^^®- . ; ' -' : ;;'.-^'--";.'.- '^ ' .' r '-'j l . :: - r' - -,- ;,-'^'t 'v''' v - ^^S^iy\v ;^-.S; ' : ^*:S^|

-| . - v i' " -:/. '.' " To get back to a discussion':of the"61deV,: Beti!yf^Y^illBT^

-. 'j^it will-be-'DbserTed :from the assay and geoiogical^plan,;that

- shears and'veipletB strike in various directionsf^diver^ginv^ •:^'^fy^^^-!^

: ' . ' ^ f* hAH 4k *A ** 4 *A *d *L'^M M*^ *kBav\* *^ i .J ** ' '^ V^ 4^ J**Wl w ^M ^l\ ^v *A ft J* . W * ^art ^ A UlrlirnSllr tf* ft/.' O K\MAW^^ ^ AA

i :

- \ j . *1 a i ri' ijf* ^.*--^ ? ' *, '^^ *-1- K-' V--T. r-*/ .'Vrt*'^•'i1 1 ' *'-v-:. -t -,:-: '*.'T-". *'-•'iV • 1jv* ^ ';C V"'-'" 7 "" 1" * |t v:"'"''-'; '-'-i'-^'-' i-i^'5;'^-- V.^.-'^fx''^1 '.•; ; converging v: y^4nletfl.vA"mo8t ;;unfavourable--:featur.e

the se reins^f i'om^ih'6 ^^^ practical ;;poi nt' of /vi ew" l s^the V.d'iffwhich:obvioiiBly. :'wouid ria'nifest -itBelf:rifTf one ? .a'ttemptedvtt'

^: ••M^W^^. themjunderground'. Sampling ;w.6uld''have - to' be. exceedingly, p". ^t&m^^ z B*il^i^sjindeed'.and^even then -it -seema inevitable that'^.^good'PdealX,f'.:Wv -fr^^^-' '"A'f'/-'. iiit'V^V. - -A 'V^' ;^''-?-f^^ development ;,muBt occur.-'-Local' irregul&ri ties'in -'dips wbul 4*

complicate the'problem and how one would avoid a considerable/

amount of dilution in stoping ie difficult to imagine. Of, couree- ,.

conditions way be more favourable at depth but/this .seems to me-; ^j;

most unlikely. ' . - ' '; r ' i-^' ' ".':^l

At the commencement of our sampling of this property

two years ago our first step was to discover vrhich of the variouss

veins exposed carried attractive values and v/hether.or not the

values were chiefly contained in the quartz stringers. Results ooon

Indicated that the values were almost altogether enclosed in them

a.id it was thought advisable to confine our channeling to the

DUPLICATE COPYroOR QUALITY ORIGINAL

TO FOLLOWnarrow widths shown for the early sampling on the plan. Results"""

up to that time were confusing and of course very incomplete. Before

renewing our work this year we decided to select the most promising

area indicated by the earlier work and to sample it systematically

across widths of fifty feet or more in the hope that the quartz veinlet

-s might be found rich enough and numerous enough to carry

fair values across the material intervening and yield promise of

tonnage. Also it was decided to cut no channels less than 4 feet

in length and with very very few exceptions this was adhered to.

The first few weeks work between Departure 3450 and 3750

and Latitude 2850 and 3000 following out the scheme suggested

indicated that there is no hope of success along this line in this

portion of the property at least. We still felt however that further

work was justified and turned our attention to the merits of

individual veins.

We resampled the system of parallel and converging

veinlets in a well defined shear zone lying just to the north of

the blacksmith's shop but results were absolutely dissappointing.

We then turned our attention to other portions of the map area

and finally decided to resample and extend our sampling of what we

now call the grade vein. It also turns out to be a system of

parrallel and converging veinlets. The eastern portion of this for

a distance of 125 feet carries values averaging about S15 over a

with of about five feet. Extension of this westward was

somewhat difficult owing to the amount of stripping and trenching

necessary and the difficulty of tracing the vein at points where it

narrows to tiny tourmaline stringers. However we have now sampled

it pretty well for a distance of 600 feet except for an interval

*.:-A j;: -c •" r . : ( j-...;'^^v^.- : 'i- *.\

^^^feicSSS^i'.^V^x'W'^'^I^M?'^^5P'.!V \VV.;-i(y,f;*i*W*}^\tVt- 1t * TVV:*;-W , * V -' '-'-i''*''''x tV^V^v S " -V* - -'-*.-j J*E/ rf fw;; -^(TSf.-iPJ.*^' 1 : 5.*?-1 *:^'"^'''';^"'^yV ;*^'--.', o ; -i Vv /:'".Xy).V''\v.*V'j' 'V.; i'.i4^/'*1'

/, -renewing •^frtfork; thi B year we decided "t o - Bel'eot wirkoist •fcroMaitfg!**'^?.;- v^;^--1^? :^;::;^:: v ^^--^ ^ :^'-i".^ ^^^:; y;:1-^v^^;,^;^^^^^ffr' \*^1 S*l**i, ^.f 5S'.;#B^iW^:;vrT'-.-K-^i^^J*;^-'--i 1 -V^^

across'widths of fifty feet or more In;the -hope'that yihe^quarti^YelJll?

-s night be'found rich enough and numerous enough to carry'- ;^,:;^3^^

fair Talue8 : Bcro8s the material intervening and yield 'promise of -4^^

, tonnage. Also it was decided .to cut no channels'less than 4 feet ^;4.'.

'f ' Vnd'Latit'ude^56-:and: ^000 following'out"^the Vche^^ei^^e'^ldl^ii^"^. l"v7;K^•^^;^^•^•';J r•V:;.^^^^r.^•.: ^ : :-..-.r-Vvv ; l '^.;;:.-':::^v?\^t.^^^Be^; . ^/ l indica.te'dVth'st^nefe^s'{i)6 -hope of "BUCCCBB alorJg thi9vliqe^in\t^l;i®i''

portion-bf the

hope of BUCCCBB aloEig

at least. Ut still felt however' that ;,-

.attention to \tho mer i t B'

s ve r that ..further \- ^ i, ' J^fit^ffi--

v work was -Justified and 'turned our att'ention' to -the merits^ofvv^^t^w^' '' "' ; . '-''"i*. ih" :(V^'' :: " V; •••' ; --'.'.''.. " ; -'•'••" ; -/'' "' - - ' : -- -:.'.'i' -.s',.- 1 •''•^^^^li^S :?. v individuai'VeinB^^^" /^h^^^v'-V '-/"M -, - -'.'.Ik -' -:M^^)^:^Hv^S8W; A.'-^.uH— ;v :^;v'"'.•;; --';' ''^•••' '.•••'••'••••••^ :'"-" ::; ' \^^^S' ?J^9TO''"- f., ;^ : ^/^^-v'j-firfe^r'eBam^p^ By st e.a 'o f.'"parallel ah'dffi6hY'errgihg^f*.^^w^'''

Y.veiri'l.(6tfl''" !^ft'v R^

the blacksmith's-shop but results were absolutely dissr-ppointing. H---. \ * . ^ -. - V

Y/e then turned our attention to other portions of the map area

and finally decided to resample and extend ;ur sampling of what we

now ea] l-the grade vein* It'also turns out to be a system of ,'

parrallel and converging veinlets. The eastern portion of this for

a distance of 125 feet carries values averaging about ^15 over tt.

vridth of abrut five feet. Extension of thi;;; westward ^ was

somewhat difficult owing to the auount of stripping and trenching

necessary and the difficulty of tracing the vein at points where,it

narrows to tiny tourmaline stringers. However we have now sampled

j t pret',y vrcll for a di ut an je of COO fct-t cxccyt for r. r, i)r,-.r\al

JUPLICATE COPY(9) POOR QUALITY ORIGINAL

l TO FOLLOWi^..; ........... .,f/V; where it crosses udner a draw and overburden is heavy. Results were

ftat first very encouraging as far as values go but later sampling did

not stand up as well. For a short distance west of the section first

mentioned values are consistently good and then an interval of 100

feet follows where values are lean. From this point to the draw

values are very poor but on the west side of it they improve greatly

but the quartz stringers idverge rapidly here. Sampling of this latter

section is not complete. This vein lies along the approzimate

centre of the mineralized area striking about east and west midway

between the two andesite dikes.

Another persistent vein, better in appearance than the

high grade vein, lies just to the north of the north andesite dike

and practically parallel to it. It has been sampled at irregular inter

-vals for 600 feet but while a few good assays have been obtained it

does not seem hopeful. We are at the present moment exposing and

sampling another one lying a few feet to the south of the latter

which pans very well but no results are available yet.

Ali of the veins dip at varying degrees to the north

but from a inspection of the diamond drill sections the general

average dip is steep.

It would be as well here to say something about the

diamond drilling. Two short holes were drilled several years ago.

No records of these are available. The other five holes shown on the

plan and sections were drilled later. At about the time this

drilling was completed the late W.J. Webb, for some reason and in

some manner prevented the Comapny form sampling the core or at

least he gave orders to that effect and ostensibly he was obeyed.

However I have heard it stated emphatically that the caretaker who

feet Voiiowa''^ wh'ere^valuea''Vre".;ieany : Pf6m\ihiB point Ho the'.'drav ;^:^'^/

. ; values-are^Yery'poor.but (on the'wesi'Mde ,of';'it they. Inproye ,greaj-ly;i

; but. the q.uart^; stringerfl diverge';repidly,^ere*-;, Saapling "'of^thi'o^la^te:

section'is ;riot, roomplete* This-vein lies'along the apprbximate*./;!.^ '^ N

*; - .-^?; - hi gh grade^y^ nf ;iU^'3 u^t^'^he;^^^

whichi paha.TeJyj'^'^il'bui no/resulte 'arp^avaiiable yet.\; ' S^/^'^fit^

All of the-Veins dip at varying degrees to the r r; rt far ';.'-'"-

but from an inspection of the diamond drill section:, the general :

average dip is steep. -^ ' :.

- It would "be as veil'here to sny sornethlng e"bout the ' -,

diamond drilling. Tv?o short holes were drilled several years ago. No

records of these are avail able. T he other five holes ono:sn on the

plan and sections were drilled lcter. At a"oout the tiir.e this

drilling was completed the late W. J, V/eVb, for some reason and in

eoaie manner prevented Ihe Company from sampling the core or at

leant he gave orders to'that effect and ostensibly he vras obeyed.

K OY; t ve-" I have ht c.rd it .?ta-ed e:r.phnti cully that the c:\rotaker v.'ho

^PLICATE COPY( 7) .OOP QUALITY ORIGINAL

** TOFOliOWwas here at that time has stated that Chas. Spearman, the consulting

engineer looked over the core and took away short sections of it.

I have heard this in other quarters also and for all we can tell by

an inspection of the core this may or may not be true. The narrow

sections containing the values may have been taken out and never

reported although it is difficult to believe. Whatever happened

we found the core apparently untouched and in good shape, showing a

high percentage recovery, and sampled it very thoroughly. All features

considered of importance are shown on the sections. The results are n

not encouraging. Unfortunately the strong suggestion that the core

has been highgraded leaves us in doubt.

From a consideration of all data now in our possession

the high grade vein is the only one possessing very devinitely

attractive features. Many other stringers contain attractive values

over 4 to 5 foot widths for a very short lengths but none of these

are at all consistent in value for any lenght as the assay plan

clearly shows. The shafts were unwatered and sampled but neither

show good values nor do they reveal any other information of practical

value. The No. l is 37 feet deep and the No. 2 is 18 feet deep.

Very little work has been done on those portions

of the property which lie outside the assay plan. Overburden is

generally heavy in these portions and outcrops very rare. A few

samples were recently taken on some stringers outcripping near

the west boundary of the property. Results were fair and more will

be taken. Also the entension of the vein lying just north of the

blacksmith shop was located by a deep trench at a distance of

370 feet to the west but this work was too expensive to carry on with.

The vein at this point assayed $12 over a width of 5 feet.

tvfc - •.^rtfft&i-w'fl&v i

^WW^^Y^tione containing the 'values 'may hay* *be*n '-taken l outland'-nere^-vp* ••'•V-: •••- . -:-,"'V- V , .'\,V4^:'-:-,:Vx-^V'":v;;,'-A i :;;--V:''-.-' k'-'-

reported although .i t Is difficult t elieye. 'Whateyer happened V v'^

we found ".t h 3 corV'apparently untouched'-and In good'Vhape/BliWi'n^'-'a^^- - •:":-- .v ^4 '-- ;- -^ vv':i.:' 'V;:^ 'ftfr&'frty'-t^ high percentage recovery,- ahd"sampled it yery thoroughly. All:features

considered'; . --.'. ' ' o .1 . ' - ' . '4 ' i^ '-' \* -'•: ,- -. : ' .*,-*.-^'^Knot venp ou?agini:;-s' ,' *".' ;k; "r -has been•^,r,^,,.-,. -;v, u,. 1 ^'^ --; ^'^-'--^-^- ,^,^.^^^^

^60VijfM

Ue-.-,tn.•••-.'.^^•^•••^••V't^;^olcarly ohows^ The 'ohaf to were .unwalered ; and pampled but /neither Ww^'- '•-"- , - ; v'.. /..-'.0'-::5 ,-bther^:' V- :;\-r-'--'',^.^X--''r^p?-;

' 'show good values nor do they reveal any/inf ormati on of practical'. V-*' .

value. The No. l is 57'feet deep and the Ho. 2 is 16 feet deep.

" Very .little work has been done on thoae portions ' :|

of the property .which lie outside the assay plani Overburden-14 ••''";/

generally heavy in these portions and outcrops very rare. A'few - " ; -,

•samples were r^cent^y taken on ec::e stringers outcropping near

the wet t boundary of the property. Results were fair and raore will

be taken. Also the extension of the vein lying Just north of the

blacksmith shop was located by a de.p trench at a distance of -

570 feet to the west but this work vras too expensive to carry on with,

vein at this point Ruuayed C ID over a width of C. feet.

I am unable to offer anything regarding the genesis of the ore,

Gold enrichment in most cases is this country is believed to

to have been the result of emanations from acid dikes etc. and it is

possible that enrichment of the shears on the McCarthy-Webb followed

the intrusion of the andesite porphyrite dikes. It is certain that the

-se *re younger than the quartz veinlets since they cut through

and displace the north and south veins.

According to present plans about ten days work will suffice

to complete all surface work which can be done without going to

great expense and in my opinion we whould then decide whether we

are to abandon the property or do some diamond drilling.

Any suggestions you may feet able to offer will be

most welcome.

Yours truly,

H. O'R. Dyer.

rOOR QUALITY ORIGINA! TO FOLLOW

i - ., . - .*T?^T*'"P P,'AfU. n? 0^9 Wv'VO A . e o* jins, TIB., !^?^#^ "'. -.; 'O -- r'-

OP 0 \ '

.4, . 'JT-V •'

43CeBSW8218 FINAN39C1 FINAN 030

OOLPi'iHt'3

by, January 24th* 1040

So t* t This property was originally known-*s the McCarthy* y e t b Property, and later as the Algon* t'Utuuit* It vas examined by J.K.Oram in 191? who recommended doJn* some work on it* In 1039 the Consolidated took an option on the property* und after some litigation, finally did a little drilling in

and the* abandoned the property* A f e* years later the A l g wax Suaait Qo&fany vas forced* who sank an incline shaft down the strike of the vein lo a vertical depth of 100 feett they put up a 500 ton flotation cd 11, und proceeded to nine out by a surfaoe glory hole a ee eeotion of the property well to the north of the minoralicod tone, and in a location where no one

had found substantial gold value* *e a donsequenos the mill treated 44,869 tons of rook in 1937 from which WAS recovered 468,130 in gold or 91*52 a ton* In 1998 Attempts were mad* to nine the better oJL no ra li ted •actions, and the mill treated 60,670 tons of ore from which WAS recovered #204,875 in goll or 93*07 a ton* While -thia was eone improvement no profits were .

nade* An examination of the nine naps showed that all thie ore oaae from the first level and the otopes were oarriod to widths of from 15 to SO feet* An examination of the early plans of Consolidated*!) work, both eurfaoe and drilling, and ixleo assay plans of the present operators indicate that the gold content lo confined to relatively narrow widths of from two to ei* feett and that the adjoining wall rooks contain no gold*

About everything wrong that could be done was done at this property* the ehaf t has an incline down tho etrike of the vein at a dip of 55 degrees* und tiee up a leetge part of the best oro ahoot* xh* arrange* nont at the headframe allowe for no waste disposal* Tho mill has a eJpaoity of 500 tons a day, which is far too large* Flotation is used which involves expeneive freight and smelter treatment of the concentrates* The present operators infom ne the ore is ouitable for straight oyanidation*

The nine needs a new vertical shaft sunk to a depth of at least 500 feet to,open up two new levels with sufficient development work on these levels to get ahoaA of the mill*

One hundred and fit ty tons a day is an adequate capacity f of the Dill* Oyanidation equipment would hare to be installed i and a em Her ball mill substituted for the large one now inetdled*

The cost of doing tho above would be between 9150,000 and 9200,000*

With the afore mentioned expenditure, l beliwa that this property oan be made a profitable producer* and Mould be ooneidered if an ...^.,. opportunity preeente iteelf* *t the present tine the present operator* who are proceeding on the avove plan,Kaye finances* to oontinue work for the next month or eo*

7KAOIKO QQM

PflOWSRTT.There are etven patented mining elf l as in ths

property, Till B. 3. li* 2 048,40,00, DI* B2, OS'andJ&lOa. Hegietered in Sault Cte Mft ri e ^nt* The** ol*lae are ohown on the attached plan* The vain dip* to the north at from 6ft to 70 degreoe *nd it 500 south of the north boundary* The two claims, 2002 bnd 0063 to the north* should be taken up If a deal le nado* AC ono tine the Coneolidated held an option on then for 108,000* w. H. Ul&lar, Uining Aecorder of Baut **te Marie, represents tho owners of tho o o claims*

OfflfKRSHIP,The property at preeent le held by Uagino Ooid

Wines Ltd* 67 Yonge Street, Toronto, 0*0*Rathseb, ^resident*Tho following information it takon from

the Financial Voet Surrey of *in*s 1039*1040 page 141*•QapitallBation, Authorised 3,000,000 eharee,

Outstanding, 1*310*096 eharee, all of which are in esoro** Of thle 1,000,000 shares l o oued to Algona Summit for property! 500*718 oharoo aa bonus for secured o red! tore of Alcooa-Ouim.'iit on basic of two shares for each 01 of claim in oonoidoration of aooured oroditorc Halting three ye&re for full payment! 10*070 ehccei ae bonus for unsecured oroditore on baoie of ono -ha if ehareai for each 51 of claims, in consideration of three y o* r o postponement*

•Options Granted on 1*350*000 shares to net9370,000 if fully exeroised, furtho* 100,000 shares eet aside aa bonus for full oxeroise of agreement* Initial payaant of Si O .000 received"

The property la loo&tea in tho ^ult ^to kilning DiTieion of Ontario* on the road betveen Ooudreau, on tlie /dgot&a Central H.R* and Looalsh on the O.P.R. about five rnlloe from tho former and ten allot from the latter etatlon*

The property *ae etaked some tii&e before 1920 by ^.J.Woeb for him t e If and D.J.MoCarthy.It vas saapled by J. K. O ram in 1910 t?ho attempted to Btakeadeal with the owners *, but without suooess* Later the property was optioned to the UoGarthy-Vebb Ooudreau J*ines Ltd* Apparently thie option vae allowed to lapse and the ConeolsdatoA later *ad^ a deal with McCarthy and Webb* Shortly after this the Ooudveau company olained that their option me still tmlid and litigation ensued* l do not knov the exact results of this except to say that the Coneolidated resumed work on the property* winding it up with a Halted dia&ond drill program in 1931, after which the property WHS dropped*

In 1084 tho Algos* Suat&it Ooid Mnee Ltd, vat formed* Thie occpany raised a large a&ount of uoney and eunk an incline shaft to a vertical depth of 100 feet, built a 600 ton flotation mill, and then atte&ptod to mine by a surfaoo glory hole, a section of the ground to the .north of the generalised cone* The recovery fro* this operation vat 11*08 a ton*

Attempts were then stade to nine acme of the better eeotions, but largo widths were taken and much dilution ensued* Apparently there is a eebt of about 1100,000 against the property payzaent of which has been postponed for three years*

Kagino M j nee was forned in Beptombor 1939 to take over the property on the aforementioned basis*

Qold Mines ltd*

CfgQLQQT,The gold bearing veins ooour in an intruoion of

granite porphyry of Algonan Agt* Xhie rook grades into montanite, quart* porphyry and feldspar porphyry* Host of the rook hat boon onnsifterably altered by ehearingi oiliolfioation and oarbomtisation*

gold bearing ore shoots are lenticular and ooour in shotted tones having a generally westerly strike and a dip of 66* to70* north* The shoots ooour in echelon rmd appear to bo oonneotod by links whioh *ro mineralised but which contain no conanorcial gold values*

The gold oooure free or in aesooiation with a fcmall amount of pyrite^ in.sooAS of quar t a or silicified rook*

Quartz seams ooour throughout the nase of porphyry, and a casual inspection might lead one to boll e ye that a large mass of low grade ore was availabls* This is not the ease* The gold is confined to definite ehears which aro c on o time t hard to identify*

Our company* sampling in 1031 ehoved definitely that tho gold content of the rook away f row the voine wns practically nothing*

bearing quarts lenees have boon found along a strike length of BOO foe t t and hare been developed to a depth of 200 feet*

The surfaoe of the property was sampled oeuplstely by H.OIR* Dyer in 1951* Xn a strifco Itn^th of 150 foot the f following result B were obtained i

Length of Bhoot,i-,- fV -i-'-'n

200 37 00 00

—— -^y a -m

Width ft.

4*804*00 4.755.10 6.00

Ooid On** at (30), 9^ r 7

918*8410. ao4.00 fl.53

. ?f)l?J582 feet. 4.06 feet 0.50 * 0.40 Gs.

A limited amount of diamond drilling vas done* Tire holoB vere drilled to intersect the tone at a shallow depth, the deepest point of intersection beln 100 feet* #ino Intersections of interest nore obtained which average 0.50 os. aorooe 3.0 feet*

There is little or no Infirm* t i on oft the sampling rooults from the underground workings. A. 1 1 the platte Beamed to havo disappeared*

At the east end of the property on the 2nd. level* there ie a o ho o t opened up ready for stoping along a length of 132 foot, with an average width of 4*5 feet* Thie was stapled by Htwacnt* ^ewnfcnt** Engineer Xend&ll told me th*t this shoot

higher than 0*35 os*

results give little idea of tho cold content ao the old otopes have been taken out with widths up to 20 f o tt, taking at leaot twice aa much w&ete as ore*

l:

Ooid Ktnee Ltd*

The oro shoots apparently can be expected to have a length of from 100 to 250 feet* with widtho of fro* three to six feet*

Sufficient information i* not available to estimate tht grade, but a ooid content of between 0*50 and. 0*59 os* o*n b*reasonably expected* , . . . .j

Bittle or no work hat been done out*!** of the original area sampled by ut* thor* art tome possibilities of an extenvioa along the strike* Structural conditions art such that the re i fca and or* can be expected to continue to depth*

If the veins maintain their present anal e of dip, they will dip out of the property into the Miller Group, at a depth of between 1,000 and l,GOO feet.

*he veins etrike east and vest and dip Aft0 to the north* ?ho present shaft has been started on the oust end of the m*in oro oho o t and sunk at an angle of 35 degrees to the west* with l o Tel B at vertical depths of 100 and 200 feet* This has tied up considerable ore between the first level and the surface* with thio exception a inrgt part of the f re between the first lovel and the surface has been reacted*

Some ore hat been extracted froa abort the second level 9 but the ore sono has not yet been any whore raxrtyx fully explored*

*'he ore shoot nentiontd at the bottom of I'age 3 is the only one iuaodiutoly available for e toping*

present operators are confining their development to the ocoobd level la an attempt to open up sufficient ore to Justify revai&ping the mill, and thereby obtaining enough ore to pay the coot of deeper development* Lateral ditutond drilling ia alao being carried on*

deeper development requires that a vertical wln&e bo ounk froB the eeoond level at a point from where it oan be raioed through to fi suitable location on the surface*.

Thio work to-gether with 1,200 feet of work on each level would probably put the Mine in an ore position to food a

of 150 tons dail)r capacity*

mill building is in good shape, and has plenty of room in it for tho installation of a cyanide unit* 'ho ball nill lo in good chape but hat too great a capacity for tho nine*

Tho mine is supplied by power froa the linos of the urcat Lakes Power Co* A good road runs froa tho railroad through tho property, and the property ie adequately equipped with

and office buildings*

Maeino Ooid Mines Ltd*

*hs financial sst up of tht company hai been give* under "Ownership" * Thert i* evidently about fi BO, 000 in debt* offal ne t tho property* Tniss have been e tailed of* for three yean (from September 1039)*

Apparently ths group behind Kaflno ttinei hat* an option on a fifty per interest i* theneteo* for the expenditure of 1375*000* this would be just about enough to devolope the property and pay off the debts*

If a satisfactory deal couXd bs agreed to* Z. think that thie property is worth serious development*

Zf sufficient ore is found on the second level. it might bs poeoibls to out down the ai&ount of money required for deep development by running the mill concurrently with the development program*

'eepeotfully submitted*

D.O.ltoKeohnie

Bud bury **nt* February loth* 1940 *