geological rpt conant twp - ontario · geological report on the u6-savant property, nw ontario page...

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Geological Report on the U6 -Savant Gold Property, Conant Twp., Ontario

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Claims: PA 3013466 and PA 3013467 NTS: 52J09

9025' 00" W - 50 30' 00" N

Report Prepared for:

CAN A 0 A House - 0 s...,_ ~ Avalon Ventures Ltd.

Cat Lake

• Stluin Post

Sioux Lookout

1>

Fort Hope

o N T A ..... ·R 1 -00

* r .... Spur o 0

Savant Lake

Schreiber 00

Terrace Bay

®Thunder_

Suite 1005, 111 Richmond Sf. W.

Toronto, Ontario Canada, M5H 2G4

by:

Jean-Philippe Desrochers, Ph.D., P.Geo. Consulting Geologist

January 15, 2006

RECEIVEO-JAN 1 7 2006

G-20SCIENCE ASSESSMENT _ _ ~O:;:..~~~' C E ___ _

J-P Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant Property, NW Ontario Page i

JPD

Geological Report on the U6 -Savant Gold Property, Conant Twp., Ontario.

Avalon Ventures Ltd. Suite 1005, 111 Richmond St. w Toronto, Ontario Canada, M5H 2G4

Tel: (416) 364-4938 • Fax: (416) 364-5162

January 15, 2006

Jean-Philippe Desrochers, Ph.D., P.Geo. Consulting Geologist

RECEIVED JAN 1 7 2006

GEOSCIENCE ASSESSMENT OFFICE _

January 15, 2006

J-P Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant Property, NW Ontario Page ii

Table of Contents

1 Introduction ............................................................................................. 1 2 Location, access and previous work .................................................... 3 3 Geological Setting .................................................................................. 4

3.1 Property Geology ............................................................................. 4 4 Field Work ................................................................................................ 6

4.1 Reconnaissance worle ..................................................................... 6 4.2 Geological study .............................................................................. 6

4.2.1 Property Geology ................................................................. 6 4.2.2 Mineralization ....................................................................... 9

4.3 Channel Sampling .......................................................................... 13 5 Interpretation and Conclusion ............................................................. 15 6 Recommendations ................................................................................ 16 7 References ............................................................................................. 17

JPD Avalon_U6 Jepa-CJan06. Jan 15. 06, 9 23 PM January 15, 2006

J-P Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant Property, NW Ontario Page iii

JPD

List of Tables

Table 1. U6 Savant Grab samples, July 2005 ................................................... 7

Table 2. List of Gold Assay Results from the Channel Samples, September 2005 ...................... , .................... , ................................. 15

List of Figures

Figure 1. Location map of the U6-Savant Property ........................................... 2

Figure 2. Claim map of the U6-Savant property ................................................ 3

Figure 3. Geology map of the Savant Lake area (G.S.C. Open File #4255) ............................................................................................... 5

Figure 4 a) Coarse felsic fragmental unit, b) bedded coarse ash tuff, c) feldspar-quartz porphyry dike, d) contact between a folded felsic volcanic sequence and a feldspar-quartz porphyry dike. The first generation offoliation (S1) is folded and cut by the porphyry dike. The second generation of foliation (S2) cuts S1 and the contact between the volcanic unit and the porphyry dike .................................................................................... 8

Figure 5 a) Sector 1. View to the west-southwest of the corridor containing quartz-pyrite-pyrrhotite-chalcopyrite vein lets. The general trend of the veining is indicated with the red dotted lines. The pink arrows indicate the location of the two lines where the channel samples were collected; b) closer view of figure 100a with the position of the two lines of channel samples; c) sector 2. quartz-pyrite veinlets. Vertical view; d) Sector 3. Photograph of a grab sample with pyrite veining and biotite alteration ....................................................................... 10

Figure 6. Compilation map of the central part of the U6-Savant property (Modified from Wardrop, 2005). The thick black lines indicate the location of the channel samples lines ....................................... 11

Figure 7. a) West-looking view of the sulphides-rich vein immediately to the west of trench T6-7. A selected grab sample from this trench assayed 26.7 gft Au. The vein is approximately 10 centimetres-wide; b) Closer view of the sulphides-quartz vein. Note the massive chalcopyrite immediately to the right of the marker; c) biotite alteration in association with chalcopyrite-pyrite veining in sample 912258 (1 m @ 1.25 glt Au) .................................................................................................. 12

Avalon_UB_reporCJanOB, Jan 15.06,923 PM January 15, 2006

J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property, NW Ontario Page 1

1 Introduction

In September, 2005, Avalon Ventures Ltd ("Avalon"), contracted the author to study the geology of the U6-Savant gold property situated in northwestern Ontario, Canada in order to evaluate its potential for economic gold deposits (figure 1).

The property is comprised of 2 claims covering 1280 acres and title is registered to Teck Cominco Limited (figure 2). Avalon holds an option to earn a 100% undivided interest in the property by incurring $500,000 in expenditures on the property over four years, including a firm commitment to fund a minimum $50,000 work program in the first year. Teck Cominco retains certain back-in rights and would retain a 2% NSR royalty in the property if the back-in rights were not exercised.

The author visited the project between September 19th and September 21 S\ 2005 and collected a total of nineteen (19) channel samples in two sectors. This work was carried out as a follow-up field investigation of the property subsequent to an initial2-day reconnaissance visit in July, 2005 by Avalon's President, Donald S. Bubar, P. Geo. accompanied by consulting geologist Tim Maunula, P.Geo. of Wardrop Engineering.

The reconnaissance work successfully relocated two of the more significant showings on the property and the old baseline so that the locations of historical drill hole collars could be identified and tied into the new mapping. The locations of new logging roads were also mapped and a new digital compilation map of the property was prepared by Wardrop. Ten grab samples were collected at that time and assayed for gold, silver and copper by ALS Chemex Labs. The results of this work are included in this report.

This geological report documents the results of both the July reconnaissance field visit field investigation and the geological study carried out in September 2005 and presents the author's conclusions and recommendations for further work on the property. Logistical support for the September field work was provided by Eveleigh Geological Consulting of Thunder Bay. The original work plan had also contemplated carrying out mechanical stripping and washing of the two gold showings re-Iocated in July, but this work was not carried out due to a lack of availability of suitably equipped contractors in the local area.

This report is intended for the sole use of Avalon. It was not prepared as an independent technical report as defined under Canadian Securities Administrators National Instrument 43-101 and therefore may not comply with Form 43-101Fl.

1 J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property, NW Ontario

U6-Savant Lake Property

LOCATION MAP

Figure 1. Location map of the U6-Savant Property.

Page 2

1 J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property, NW Ontario Page 3

CLAIM NUMBER DUE DATE UNITS

PA 3013466 19 January 2006 16

19 January 2006 16

Figure 2. Claim map of the U6-Savant property.

2 Location, access and previous work

The U6-Savant gold property is located in Conant Township, approximately 210 kilometres to the northwest of Thunder Bay, and thirteen (13) kilometres to the nOlth of the town of Savant Lake (figure 1). Access to the property is via a network of lumber roads on the east side of highway 599. At the time of the field visit in September of 2005, a lumber company was actively logging in the sector and building additional access roads.

The property is underlain by the subaqueous calc-alcalic intermediate to felsic volcanic rocks of the Savant Lake greenstone belt in the Wabigoon subprovince. The volcanic rocks are intruded by a series of feldspar and quartz porphyry dikes. The volcanic rocks and the dikes are deformed and metamorphosed to upper greenschist facies. Gold

J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property. NW Ontario Page 4

mineralization is present mostly in the central part of the claim block and occurs in deformed thin pollymetallic quartz veinlets.

In 1970, Noranda Exploration Company Limited completed an airborne geophysical survey and identified a strong EM anomaly on the property which could not be located by follow-up ground electromagnetic and vertical loop surveys. In 1975, a total of eight (8) boreholes were drilled to test for Cu-Zn massive sulphides mineralization. The drilling identified a broad zone containing up to 15% disseminated and stringer pyrite, pyrrhotite and chalcopyrite, accompanied by strong sericitization, chloritization and silicification. Due to the original focus on Cu and Zn mineralization, the core was not initially assayed for gold.

In 1984, Teck Corporation re-sampled some of the core to assay for gold and identified widespread anomalous gold values associated with the disseminated sulphides. Highlights include values of 0.65 glt Au over 36.0 metres (including 1.2m @ 6.8g1t Au), 0.43 glt Au over 52.4m and 0.5 glt Au over 32.2m (including 0.52m @ 10.2 glt Au). During the same year, Teck also collected several grab samples and channel samples in ten (10) trenches. In trench T6-7, two grab samples taken from an eight (8) centimetres semi-massive chalcopyrite-pyrite vein returned 26.7 glt Au and 6.2 glt Au respectively.

3 Geological Setting

3.1 Property Geology

The U6-Savant property is located within the Savant Lake Greenstone Belt of the Archean-age Wabigoon subprovince of the Superior Structural province. This greenstone belt comprises tholeiitic mafic flows as well as calc-alkalic intermediate to felsic tuff, lapilli tuff, and flows interbedded with wacke and conglomerate (Blackburn et aI., 1991). The Savant Lake greenstone belt is surrounded by the LewisRobinson-Lake of Bays batholith complex to the west and the SowdenWabakimi Lakes batholith complex to the east. The property is underlain by calc-alkalic subaqueous felsic to intermediate volcanic flows and tuff units of the Handy Lake Group, dated at 2745 +- 2 Ma (Davis and Trowell, 1982) (figure 3).

The volcanic rocks of the Savant Lake area are have been deformed by two (2) major phases of folding (Sandborn-Barrie, 1989). The axial traces of 01 folds generally trend east-west but they are refolded by northeast-trending and plunging 02 folds. The interaction between the two phases of folding generated a mushroom type interference pattern (figure 3).


The volcanic units are generally affected by greenschist fac ies metamorphic assemblages except near large plutons where amphibolite metamorphic assemblages are developed.

o Porphyry dike

• Sedimentary Rocks

o Felsic Volcanic Rocks

• Tholeiitic Basalts

o Intermediate Volcanic Rocks

Granitoid Rocks

Figure 3. Geology map of the Savant Lake area (G.S.C. Open File #4255).

J-Ph. Desrochers Avalon Ventures LId Geological Report on the U6-Savant property, NW Ontario Page 6

4 Field Work

The geological work by the author was conducted between September 19th and September 21S

\ 2005 with the assistance of one technician provided by Eveleigh Geological. The main objective of the work was to characterize the style and the structural controls of gold mineralization in the area and to evaluate the potential for finding an economic gold deposit on the property. The work was focussed on the central part of the property where there is the best outcrop exposure and where previous exploration work by Noranda Exploration Company and by Teck Explorations Limited identified gold mineralization.

4.1 Reconnaissance work The preliminary reconnaissance work conducted in July 2005 by Avalon's President, Donald S. Bubar, P. Geo. and consulting geologist Tim Maunula, P.Geo. of Wardrop Engineering successfully relocated two (2) of the more significant showings on the property and the old baseline. The locations of new logging roads were also mapped and a new digital compilation map of the property was prepared by Wardrop. A total of ten (10) grab samples were collected at that time and assayed for gold, silver and copper by ALS Chemex Labs. The assay results of the grab samples are included in Table 1.

Basically, the grab samples indicate anomalous gold values on the two (2) showings and demonstrate the gold potential of the property.

4.2 Geological study

The geological study conducted between September 19th and September 21 S\ 2005 aimed at identifying the controls on the gold mineralization and the overall geological setting of the property. The following paragraphs describe the results of this geological study.

4.2.1 Property Geology

In the central part of the property, the major rock units consist of massive felsic volcanic flows, coarse fragmental units, and bedded fine to coarse ash tuff (figure 4a, 4b). At least two (2) types of massive felsic flows are present in this sector. The first type of flow is a white to light beige, weakly porphyritic flow containing up to five (5) percent, 2.5 millimetres, white and blue quartz eyes floating in a fine grained siliceous groundmass. This unit underlies approximately seventy-five

J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property. NW Ontario Page 7

(75) percent of the reviewed areas. The second type of flow is a light beige very fine grained siliceous unit containing less than 1 % of grey quartz phenocrystals of less than 0.5 millimetres. The coarse fragmental unit is light grey and contains up to fifty (50) percent of rounded to elongated fragments measuring up to thirty (30) centimetres in diameter. The fine to coarse ash tuff units are white to light brown in colour occurring as well-defined beds on a centimetre to decimetre scale (figure 4b).

Table 1. U6 Savant Grab Samples, July 2005. Sample Location Au Ag Cu Description

No. (UTM) (ppm) (ppm) (ppm) U6-NW-l 671218.5- 1.095 2 Tr. Grey, quartz-rich, q veins,

5582651 3-4% m-c gr pyrite and in f.gr aggregates. Sericitic slips, trench

U6-NW-2 671218.5 - 1.065 1 Tr 2nd trench sample. Grey, 5582651 siliceous, 3-5% pyrite, less

sericite U6-NW-3 671218.5 - 1.080 3 Tr 3rd trench sample. More

5582651 schistose with sericite, 3-5% pyrite

U6-NW-4 6712945 - 0.038 <1 Tr Pit along tractor road. Grey 5582797 Qtz-bio schist, 2-3% py

U6-NW-5 6712945 - 0.009 <1 Tr Same pit, less pyrite (tr-5582797 1 %) more biotite

U6-SE-l 671904.5- 0.017 <1 0.01 Old trench near edge of 5582521 clear-cut. Cream colour,

qtz-rich, massive modly foliated rusty tr py

U6-SE-2 6718915- 0.974 1 0.04 Grey siliceous qvein? 5% 5582434 pyrite in f gr aggregates,

trace chalco U6-SE-3 671785.5- 1.535 1 0.02 Qtz-biotite schist w 2-3%

5582392 m-c gr py. Pit south of old claim post.

U6-SE-4 671904.5- 0.078 2 0.01 Sheared qtz-sericite biotite 5582441 chlorite schist, trace pyrite

U6-SE-5 671784.5- Trace <1 Tr NE of old claim post. Qtz-5582477 sericite biotite schist,

massive cleaved but no py noted

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Figure 4 a) Coarse felsic fragmental unit, b) bedded coarse ash tuff, c) feldsparquartz porphyry dike, d) contact between a folded felsic volcanic sequence and a feldspar-quartz porphyry dike. The first generation of foliation (81) is folded and cut by the porphyry dike. The second generation of foliation (82) cuts 81 and the contact between the volcanic unit and the porphyry dike.

A series of metre- to kilometre-scale feldspar-quartz porphyry dikes intrude the volcanic sequence. The dikes contain five (5) to fifteen (15) percent of two (2) to ten (10) centimetre subhedral to euhedral plagioclase phenocrysts and one (1) to two (2) percent grey quartz phenocrysts (figure 4c).

The contacts between the volcanic units vary from N060 degrees to N335 degrees (figure 4b) and their distribution suggests a complex folding pattern resulting from the superposition of two (2) phases of deformation. On the property, this superposition probably also generated a mushroom type interference pattern as seen at the belt scale (figure 3). The two well-developed foliations (SI and S2) are clear evidences of the two phases of deformation on the U6-Savant property. The first schistosity (S 1) is developed in the volcanic rocks and is variably oriented and folded. In the visited area, the SI schistosity


strikes generally to the northwest and dips shallowly to moderately to the northeast. However on several outcrops, the S 1 schistosity is reoriented into a second foliation (S2) and becomes impossible to differentiate from it. The S 1 schistosity is cut by feldspar-quartz porphyry dikes indicating that these dikes are probably syn-tectonic (figure 4d). The porphyry dikes are generally oriented to the eastnortheast but the local presence of fold closures between the dikes and the volcanic units suggest that the overall trend of the dikes is oblique to the S2 foliation (figure 3). The second foliation (S2) affects the volcanic units, the feldspar-quartz porphyry dikes, the SI schistosity, and the mineralization. The steeply north dipping S2 foliation has a more constant attitude than the S 1 schistosity and trends generally N240.

The volcanic rock units are altered into an assemblage dominated by moderate quartz and sericite. In the vicinity of known gold occurrences, the rocks are altered into a potassic mineral assemblage characterized by k-spar and biotite (figure 5d). In such cases, the biotite alteration forms haloes of five (5) to ten (10) centimetres around the pyrite veinlets.

4.2.2 Mineralization

The dominant style of mineralization identified to date on the U6 -Savant property consists of thin sub-vertical gold-bearing quartz-pyritechalcopyrite-pyrrhotite veinlets and veins. These are concentrated in sectors 1,2 and 3 where they comprise up to five (5) percent (figures 5c and 6) of the rock. The veinlets vary between one (1) and five (5) millimetres in thickness, and the veins are up to ten (10) centimetres thick, such as the semi-massive sulphide vein that returned 26.7 glt Au on trench T6-7 of sector 1 (figure 7a, 7b). The veinlets and the veins are generally oriented N060 degrees to N070 degrees and dip between seventy-five (75) and ninety (90) degrees to the south. They vary from slightly oblique (10 degrees clockwise) to parallel to the S2 foliation and boudins of veinlets are frequently observed. This indicates that the veins were deformed subsequent to their emplacement and that their geometry could be complex.

The veins and the veinlets are distributed within at least three (3) eastnortheast trending corridors. Two corridors are present in sector 1 (figure 6). The first corridor is located to the north of trench T6-7 and has been drilled with boreholes U6-4 and U6-7 to U6-12 (figure 6). This corridor is approximately eighty (80) metres thick and has been followed along strike for approximately five hundred (500) metres. All of the boreholes except borehole U6-11 were drilled to the north of the corridor and ended in anomalous gold mineralization over significant widths (36 m @ 0.65 glt Au in borehole U6-7, including 1.2 m @ 6.9 glt Au; Hughes and Penno, 1985). Borehole U 6-11 drilled the southern

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limit of the cOlTidor and returned lOA m @ 0.73 glt Au in the upper part of the borehole. Despite some encouraging results along the margins of the corridor, its central part has never been dlill tested.

Figure 5 a) Sector 1. View to the west-southwest of the corridor containing quartzpyrite-pyrrhotite-chalcopyrite veinlets. The general trend of the veining is indicated with the red dotted lines. The pink arrows indicate the location of the two lines where the channel samples were collected ; b) closer view of figure 100a with the position of the two lines of channel samples; c) sector 2. quartz-pyrite veinlets. Vertical view; d) Sector 3. Photograph of a grab sample with pyrite veining and biotite alteration.

... ~ 3 m

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~4.NW5 ~S;;;:;-;

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16-2 JC

5583000 mN

~6-13

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Legend

* OrabSalT'f)1e:s

o Dn. Holes

MafIC Volcanics

--- Roads

--- l arge Rivers --- Small RIvers

--- MM"lCor1:8Cts1970

--- Beddng 1972 Map

--- HlStorlCel Trenches

f elsic Vacanics

Fetsicrtru!ives

SoIl Geochem Gold Anomelles

C] oa.wnLi"le

Foliat ion 1972 Map

--- Lre --- Lre

Lakes --- Smail L&kes

--- large Lakes

Jean-Philippe Interpretati on

D MinerMzed Corridor

_ L'nei"lSeclor2

Avalon Ventures Ltd.

U6 Savant Gold Property

Compi lation of historical data WIth 2005 Sample Locations

and Interpretation

_,1000 NTS9211e

N.PlI83. Zone 115 c_,

Figure 6. Compilation map of the central part of the U6-Savant property (Modified from Wardrop, 2005). The thick black lines indicate the location of the channel samples lines.


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Figure 6. Compilation map of the central part of the U6-Savant property (Modified from Wardrop, 2005). The thick black lines indicate the location of the channel samples lines.

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Figure 7. a) West-looking view of the sulphides-rich vein immediately to the west of trench T6-7. A selected grab sample from this trench assayed 26.7 glt Au. The vein is approximately 10 centimetres-wide; b) Closer view of the sulphides-quartz vein. Note the massive chalcopyrite immediately to the right of the marker; c) biotite alteration in association with chalcopyrite-pyrite veining in sample 912258 (1 m @ 1.25 glt Au).


The second corridor corresponds to the area tested with the channel samples, and includes trench T6-7 (figure 6). This corridor measures ten (10) to fifteen (15) metres thick and has been followed for a distance of over hundred (100) metres before disappearing under vegetation cover (figure 5a, 5b). This corridor has never been drill tested.

The two corridors described above also coincide with a 1.2 kilometrelong, east-northeast trending, gold soil anomaly (20 ppb Au to a maximum of 2800 ppb Au) that splits into two zones in sector 1 (figure 6). The west-southwest extension of this soil anomaly has never been mechanically trenched or drill tested.

The third corridor is located in sector 2 within a large gold soil anomaly (figure 6). The assay results of the channel samples collected in this sector returned gold values below 100 ppb Au.

The mineralization is associated with broad and poorly defined silicasericite alteration corridors trending parallel to the sets of veins. Biotite, chlorite, and k-spar are locally developed in the selvages of the sulphides veinlets and veins such as in sector 1 (Hughes and Penno, 1985; figure 7c) and in sector 3 (figure 5d). The association ofk-spar and biotite with the best known gold grades together with a broader silica-sericite halo, and the sulphide mineralogy and veining style is very suggestive of an intrusion-related gold system. In such systems, the veins are generally emplaced in sets of fractures around the periphery of synvolcanic plutons. The veins contain an assemblage including pyrite, pyrrhotite, sphalerite, galena, chalcopyrite, molybdenite, and magnetite. A moderately developed alteration halo consisting of chlorite, sericite, pyrite, silica, carbonate, biotite, epidote, k-spar, and ankerite extends up to several metres into the host rock and stronger alteration occurs as narrow vein selvages. The locally moderately developed biotite alteration together with the pyrite-chalcopyrite veining present in sector 1 may indicate the proximity to the core of the mineralized system.

4.3 Channel Sampling

A total of nineteen (19) channel samples were collected in two (2) different sectors to evaluate both the gold grades and the continuity of gold mineralization. Both sectors are located on the east side of the main access road and they are labelled "sector 1" and "sector 2" on figure 6. In addition 10 grab samples were collected earlier in the summer during the reconnaissance field visit.

Sector 1 is located near trench T6-7 that returned 26.7 glt Au from a grab sample (figure 6). This sector is characterized by a moderately to strongly silicified and deformed fine grained felsic volcanic unit cut by traces to one (1) percent pyrite and minor chalcopyrite transposed


veinlets. Two channel lines were sampled in sector 1. The first line is located to the southwest of trench T6-7 and consists of twelve (12) samples (Table 2). The second line is located approximately 80 metres to the east-northeast of the first line along the east-northeast extension of the sulphides veinlets mineralization. A total of two (2) samples were collected along this line to evaluate the lateral continuity of the gold mineralization.

Sector 2 is located approximately two hundred (200) metres to the south of sector 1 and is centred at UTM coordinates 671718 mE and 5582225 mN. In this sector, the rock unit corresponds also to a fine grained felsic volcanic unit cut by traces to two (2) percent quartz -pyrite veinlets oriented N060 degrees (figure 5c). A total of 3 samples were collected in sector 2.

All samples were assayed for gold using a thirty (30) grams fire assay charge with an atomic absorption finish. The channel samples were assayed at Accurassay Laboratories in Thunder Bay in Ontario with their procedure code AlAAu3, while the grab samples were assayed at ALS Chemex using a similar procedure. The assay results are presented in Tables 1 and 2, and the original certificates are included in Appendix 1.

The best assay results were obtained with the channel samples collected in zone 1. Two (2) samples returned 1.25 glt Au over 1 m and 2.72 glt Au over 0.9 m on line 1 and one (1) sample assayed 3.15 glt Au over 1 metre from line 2.

The channel samples collected in sector 2 returned only very weakly anomalous assay results, with values below 100 ppb of gold (table 2). This suggests that sector 2 is peripheral to the main gold mineralization, despite the presence of thin quartz-pyrite veinlets (figure 5c).

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Table 2. List of Gold Assay Results from the Channel Samples, September 2005.

Sample Eating Number (m)

912251 671890 912252 671890 912253 671889 912254 671887

912255 671887

912256 671887 912257 671886

912258 671886

912259 671885

912260 671885

912261 671884

912262* 671884

912263 669495 912264 669495 912265 669495 912266 671721 912267 671718

912268 671718

912269 671960 912270 671960 91U71 071U2U

912262* Check

5

Northing Length Au Comments

(m) (m) (ppb)

5582430 1.0 54 Polllhvrv dike, 2% white Quartz veininq, no mineralisation . 5582431 1.0 99 Felsic flow, no mineralisation. 5582432 1.0 21 Felsic flow, no mineralisation. 5582434 1.0 91 Felsic flow, strongly deformed, traces of boudins of PV-Cp veinlets.

5582435 1.0 14 Felsic flow, strongly deformed, 1% calcite veinlets. Traces of Py in calcite veinlets and disseminated in wallrock.

5582436 1.0 12 Felsic flow moderately silicified, no mineralization 5582437 1.0 67 Felsic flow, moderately silicified, traces to 1 % disseminated Py

~

....

5582438 1.0 1247 Felsic flow, strongly silicified, 0.5% Cp in transposed veinlets ~ concentrated in a 10 cm interval in the middle of the sample Q)

'" 5582439 1.1 61

Felsic flow, strongly silicified, 0.5% Py-Cp in small concentrationslveinlets transposed into foliation

5582440 0.9 2722 Felsic flow, moderately silicified, 0.2% disseminated py

5582441 1.0 -5 Felsic flow, moderately silicified, 1 % transposed Py veinlets concentrated

over 30 cm.

5582442 1.0 10 it-elSIC 1I0W, mooeratelY SlllClTlea, l~ transposea I-'y velnlets concemratea over 15 cm.

5580293 Grab 15 White sugary quartz vein 1 % oxidized pyrite, trace fuschite 5580293 Grab 68 Less sugary quartz vein with sericite banding, 1 % Py Outside 5580293 Grab 14 Sugary brownish quartz with 1-2% fresh Py U6claims 5582224 1.0 21 Porphyry dike with a 10 cm white quartz vein and traces of Py vein lets N

5582225 1.1 54 Fine grained granular rock (volcanic 7) with 2% Qz-Cp-Py-Po veinlets 5 t-Ine gralnea granular rOCK (VOlcaniC Of) wlln traces or stretcnea 1$

5582226 0.9 17 concentrations of Py+- Cp Jl 5582458 1.0 3150 Felsic flow, moderately silicified, 0.2% disseminated Py Sector 1 5582459 1.0 100 Felsic flow, moderately silicified, trace disseminated Py 55t!315t! Grab 309 Silicified rock (IntruSive 7) 1 % boudins of Py-Cp veinlets NW Sector

5

Interpretation and Conclusion

Surface prospecting, trenching, soil sampling, and channel sampling over the central pOltion of the U6-Savant property suggest that this sector contains the most interesting gold mineralization on the property. The mineralization is associated with steeply southerly dipping polymetallic veins and veinlets trending N060 degrees. The veins and veinlets include quartz, pyrite, pyrrhotite and chalcopyrite. This veining is associated with proximal biotite-chlorite-kspar alteration sunounded by more distal sericite-quartz alteration. The sulphide mineralogy of the veins and veinlets together with the alteration mineralogy is suggestive of an intlUsion-related gold mineralized system. In these systems, the mineralization frequently occurs in sets of veins and veinlets distributed for up to 1000 metres around the periphery of a synvolcanic pluton.

At least two (2) mineralized conidors characterized by gold-bearing sulphide veinlets and quartz-sericite with minor biotite alteration are present in sector 1. The first conidor is located to the nOlth of trench T6-7 and the drilling returned anomalous gold intervals such as 36 m @

0.65 glt Au and 10.4 m @ 0.73 glt Au with individual samples assaying up to 10.2 glt Au over 0.52 m.. The northern contact of this conidor has been drill tested over a distance of approximately five hundred (500)


metres. The central part of the corridor has never been drill tested. The second corridor is located approximately 60 metres to the south of the first corridor and includes trench T6-7. The assay results from the channel sampling returned I m @ 1.25 glt Au, 0.9 m @ 2.72 glt Au and 1 m @ 3.15 glt Au. This corridor has not yet been drill tested.

Both corridors coincide with the east-northeast extension of a 1.2 kilometre-long gold soil anomaly that has been only explored in its easternmost extension. Further exploration work is warranted to more fully evaluate the gold potential of this property.

6 Recommendations

The following additional exploration work is proposed on the U6-Savant property to better understand the setting of the gold mineralization and to test for additional wider and more continuous gold zones.

1- Reviewing the Core in Sector 1 The core of boreholes U 6-4 and U 6-7 to U 6-12 (if available and recoverable) should be reviewed to define better the geometry and the controls on the gold mineralization. A series of samples should also be collected in those boreholes (approximately 60 samples) to analyses for whole rock compositions with the objective of better defining and modelling the intensity of alteration using a computer program like NORMAT.

2- Trenching Program A series of low-cost overburden trenches should be opened with a back hoe along the west-southwest extension of the gold soil anomaly to verify the continuity of the gold mineralization and to sample it directly. This may help defining other drill targets.

3-Drill Testing in Sector 1 a) Central part of the northern corridor A total of three hundred (300) metres in two (2) boreholes is proposed to test the central part of the northern mineralized corridor. The holes should be drilled at -50 degrees due south.

b) Southern corridor (area of the channel sampling) A total of three hundred (300) metres in two (2) boreholes should test the down dip extension of the gold mineralization identified with the channel samples.

Total estimated cost for this work program is: $125,000.


7 References

Blackburn, C.E., Johns, G.W., Ayer, J., and Davis, D.W., 1991. Wabigoon Subprovince. In Geology of Ontario, Ontario, Ontario Geological Survey, Special Volume 4, Part 1, pp. 303-38l.

Davis, D.W. and Trowell, N.F., 1982. U-Pb zircon ages from the eastern Savant Lake-Crow Lake metavolcanic-metasedimentary belt, northwest Ontario. Canadian JNournal of Earth Science, vol. 19, pp. 868-877.

Hughes, T.N.J. and Penno, W.L.E., 1985. Report on the 1984 exploration program on the Savant Lake Gold Project in Conant and Boucher townships, northwestern Ontario. 22 pages, drill logs and sections.

Sandborn-Barrie, 1989. Geology of the Savant Lake area. In Summary of Field work and other activities 1989. Ontario Geological Survey, Miscellaneous Paper 146, pp. 54-62.

I I J-Ph. Desrochers Avalon Ventures Ltd Geological Report on the U6-Savant property, NW Ontario

APPENDIX 1

Certificates of Analysis

Page 18

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I'~an.: 604 984 C~:l FBI: 6G4 91W 'Jll~ '""",,".aI5d1emex.com

[ CERTIFICATE TB05059835

Project 544 po. No.:

Thi!s report ~ for 10 Rock samples suilmitled to our lab .:I T'I'u1der Bay. OIN. Canada on 26-JUL-2005.

The following ha ... e access to data asrociated with this certilicate: D.,S roON) BUBAR I I

To: AVALON VENTURES lTD. ATTN: D.S. lOON. BUBAR 111 RICHMOND STREET WEST. SUITE 1~ TORONTO ON M5H 2G4

To: AVALON VENTURES l TO. 111 RICHMOND STREET WEST. SUITE 1005 TORONTO ON MSH 2G4

p~: 1 Finalized Datl!: 4-AUG-2005

AccountOPG

SAMPLE PREPARATION AiLSCOOE DESCRIPTION

WEI-21 Recelved Sifl1lle WI!IgIII PUl-31 p~ filM" to 6:5% c75 urn SPL-21 Spilt 5ilmP1e - r1IIIe 'iPlII!f CRU-Jl FIne cru&nrIg - 70% ... 2mm LOG-22 Sample lOgIn - Reel.,.., B~

ANALYTICAL PROCEDURES AiLSCOOE DESCRIPTION INSTRUMENT

Ag-M46 ore !J"SCI!! Ag - alJli regiai'M AAS CU-AM6 ore ~e Cu - aqua ~M AAS

AUl-M23 AU 3IJg FA-M limn AAS

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1.35 D.1017 <1 0.01 cua 0.974 1 0.:104 1.23 U)S 'I 0.02 1.47 o.ara z 0.01 1.06 "O.O:S <1 <D.OI

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Project: 544

POlO!!: 2 - A ,otaI.P~: 2 IA)

Finalized 0.: 4-AUG-200S Account: OPG

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To: AVALON VENTURES L TO. 111 RICHMOND STREET WEST. SUITE 10C1S TORONTO ON M5H 2G4

Project: 544

P,;age: 2· A Total • p~: 2 (A)

Finalized 0.: .4-AUG-200S Account: OPG

CERnFICATE OF ANALYSIS T~50598~ --1

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A ALS Chemex EXCELLENCE IN ANAL YTICAL CHEMISTRY ALS Canada Ltd.

212 Brooksbank Avenue North Vancouver BC V7J 2C1 Phone: 604 984 0221 Fax: 604 984 0218 www.alschemex.com

I --- CERTIFICATE TB05079937

Project:

P.O. No.:

This report is for 3 Rock samples submitted to our lab in Thunder Bay, ON, Canada on 22-SEP-200S.

The following have access to data associated with this certificate: DCSROCHERS I D.S. (DON) BUBAR I

To: AVALON VENTURES LTD. ATTN: D.S. (DON) BUBAR 111 RICHMOND STREET WEST, SUITE 1005 TORONTO ON M5H 2G4

To: AVALON VENTURES LTD. 111 RICHMOND STREET WEST, SUITE 1005 TORONTO ON M5H 2G4

Page: 1 Finalized Date: 16-0CT-2005

Account: OPG

SAMPLE PREPARATION ALSCODE DESCRIPTION

WEI-21 Received Sample Weight

LOG-22 Sample login - Rcd w/o BarCode CRU-31 Fine crushing - 70% <2mm SPL-21 Split sample - riffle splitter

PUL-31 Pulverize split to 85% <75 um

ANAL YTICAL PROCEDURES ALSCODE DESCRIPTION INSTRUMENT

ME-XRF05 Trace Level XRF Analysis XRF

ME-XRF06 Whole Rock Package - XRF XRF

OA-GRA06 LOI for ME-XRF06 WST-SIM

This is the Final Report and supersedes any preliminary report with this certificate number. Results apply to samples as submitted. All pages of this report have been checked and approved for release. Signature:

--~ --' .---~/ c....,...-~~<a.~ /-?-.~-G ~~

A Method An.lyle

Units Sample Description LOR

912259 912260 912261

ALS Chemex EXCELLENCE IN ANAL YTICAL CHEMISTRY AL5 Canada Ltd.

212 Brooksbank Avenue North Vancouver BC V7J 2C1 Phone: 604 984 0221 Fax: 604 984 0218 www.alschemex.com

WEI-21 ME-XRF05 ME-XRF05 ME-XRF06 ME-XRF06 ME-XRF06 Recvd W1. Y Zr 5i02 AI203 Fe203

kg ppm ppm % % %

0.02 2 2 0.Q1 0.01 0.Q1

4.53 4 128 67.59 15.24 3.72 4.53 5 135 69.32 16.37 1.60 4.50 4 133 68.86 16.03 2.13


Page: 2-A Total # Pages: 2 (A - 8)

Finalized Date: 16-0CT-2005 Account: OPG

1--" CERTIFICATE OF ANALYSIS TB05079937

ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06 ME-XRF06

Cao MgO Na20 K20 Cr203 Ti02 MnO P205 5rO

% % % % % % % % %

0.01 0.01 0.01 0.01 0.Q1 0.01 0.01 0.01 0.01

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A Method An.lyte

Units Sample Description LOR

912259 912260 912261

ALS Chemex EXCELLENCE IN ANAL YTICAL CHEMISTRY ALS Canada Ltd.

212 Brooksbank Avenue North Vancouver BC V7J 2Cl Phone: 604 984 0221 Fax: 604 984 0218 WWvV.alschemex.com

ME-XRF06 ME-XRF06 ME-XRF06

BaO LOI Total % % %

0.01 0.01 0.01

0.29 2.30 99.90 0.10 1.61 98.38 0.13 1.97 98.43


Page: 2 - 8 Total # Pages: 2 (A - 8)

Finalized Date: 16-0CT-2005 Account: OPG

CERTIFICATE OF ANAL YSIST_B05C?Z9937 ____ -_]

I !

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