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I I I I I I I I I I I I I I I I I I I GEOPHYSICAL SURVEYS AND CONSULT I NG Report on a VTEM Survey Kidd Property, Tinlmins, Ontario 2090720 Ontario Inc. Ref. 9-21 May, 2009 \ i ( \ ( \ \ \ . \ ) \1 ( , •• 42047 GEOSCIE[I!CE ASSESS OFFICE

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  • I I I I I I I I I I I I I I I I I I I

    GEOPHYSICAL SURVEYS AND CONSULT I NG

    Report on a VTEM Survey

    Kidd Property, Tinlmins, Ontario 2090720 Ontario Inc.

    Ref. 9-21 May, 2009

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    •• 42047 GEOSCIE[I!CE ASSESS OFFICE

  • I I I I I I I I I I I I I I I I I I I

    Report on a VTEM Survey Kidd Property, Tinlmins, Ontario 2090720 Ontario Inc.

    For: 2090720 Ontario Inc. 535 Bartleman Street Timmins, Ontario P4N 4X2 Ph : (705) 268-9045 email: [email protected]

    By : lVX Ltd. 60 West Wilmot Street, Unit 22 Richmond Hill, Ontario L4B 1M6 Ph : (905) 731-0972 Fax: (905) 731-9312 www.jvx.ca

    Ref. 9-21 May, 2009

    Summary

    In December, 2008, a 95 line km VTEM survey was flown over a 4 claim block CKidd Property') centered 3 km west northwest of the Kidd Creek mine. 7 Probable bedrock conductors within or on the edge of the claim block have been identified. Some of these conductors may have been drill tested in 1964. Others have not and some of these are suggested as possible VMS targets. A circular magnetic high within the claim block is a possible kimberlite pipe.

    Cover: VTEM B field profiles over total magnetic intensity contours (from Geotech, ref. 8258)

    2090720 Ontario Inc. JVX 9-21 2

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    Table of Contents

    1. Background 2. Conductors 3. Possible Kimberlite Pipe 4. Conclusions

    Figures

    Figure 1 : VTEM Survey, Kidd Property (from the Geotech report) Figure 2 : VTEM Survey, Kidd Property Figure 3 : Kidd Property and Kidd Creek mine (oblique view provided by 2090720

    Ontario Inc.) Figure 4 : TMI with Conductor Labels and Drilling, North Part Figure 5 : TMI with Conductor Labels and Drilling, South Part Figure 6 : TMI, Center Part

    Attachments

    Certificates of Qualifications Appendix 1 : VTEM Survey Appendix 2 : Exploration History and Drilling Appendix 3 : The Chance VMS Deposit Appendix 4 : 2002 Megatem Survey

    Maps

    Three derivative maps at 1: 10,000 combining elements of the airborne geophysical survey and the exploration history are provided with this report. All maps show topography, claim boundaries and claim numbers from as provided by Geotech. Map types are

    1. total magnetic intensity 2. calculated vertical magnetic gradient 3. VTEM and Megatem EM anomaly centers

    All maps show flight path and a UTM grid - NAD83, Z17N. Maps 1 and 2 show VTEM EM anomaly centers, conductor labels C1 to C7 and drill holes F1 to F12.

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    Report on a VTEM Survley Kidd Property, Timmins, Ontariorio

    2090720 Ontario Inc.

    On December 19, 2008, a helicopter EM and magnetic survey (VTEM) was flown over the Kidd Property centered 25 km north northwest of Timmins and just west of the Kidd Creek mine (figure 1). The survey was flown by Geotech for 2090720 Ontario Inc. The property includes claims 4211459 to 42 11462 (figure 2). The airborne survey covered a 10 km 2 area at 100 m. Total coverage was 95 line km.

    Figure 1. VTEM survey, Kidd Property (from the Geotech report)

    The results were presented at 1:10,000. All maps show EM anomaly centers. Map types are total magnetic intensity contours calculated vertical magnetic gradient contours dB/dt offset profiles B field offset profiles + total magnetic intensity BF26 (1.953 msec) contours

    The airborne survey is described in appendix 1. Geotech picked 83 EM anomalies. 25 EM anomalies representing up to 7 bedrock conductors are within or on the edge of the Kidd Property.

    12 drill holes from 1964 are within the claim block. Information on these drill holes from assessment records and on the Chance Zn-Pb-Ag deposit east of the claim block has been provided by 2090720 Ontario Inc. and is summarized in appendix 2.

    The Chance deposit is within the area of the current survey. Its airborne expression and setting is described in appendix 3.

    The property is within the area covered by a 2002 Megatem survey that is available as OGS Geophysical Data Set 1041. This survey is described in appendix 4.

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    The VTEM results within the claim block are reviewed in light of the potential for VMS deposits and limited exploration in the 1960s. The 7 bedrock conductors within or on the edge of the claim block are described. Suggestions for further work on some of these conductors are made. A circular magnetic high that holds promise as a possible kimberlite pipe is discussed. The results of this work are presented on 3 maps at 1: 1 0,000. They are

    1. TMI contours + VTEM EM anomaly centers + drill holes + conductor axis labels 2. CVG contours + VTEM EM anomaly centers + drill holes + conductor axis labels 3. VTEM and Megatem EM anomaly centers

    The base map is as provided by Geotech. All maps show flight path and a UTM grid - NAD83, Z17N.

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    Figure 2. VTEM survey, Kidd Property

    1. Background

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    The Kidd Property is centered 3 km west northwest of the Kidd Creek mine (figure 3). The Kidd Creek Zn-Cu-Pb-Ag deposit was discovered in 1963 by Texas Gulf Sulphur by drilling a strong airborne electromagnetic anomaly. Since the commencement of mining in 1963, the Kidd

    2090720 Ontario Inc. JVX 9-21 2

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    Creek deposit has produced 124.22 Mt grading 6.18 % Zn, 2.31 % Cu, O. 22% Pb and 87 glt Ag along with other elements such as Cd, Sn and Ge. With the development of D Mine, the extension of the deposit from the 6800 level to the 10,000 level, Kidd's reserves stand at approximately 23.66 Mt.

    Figure 3. Kidd Property and Kidd Creek mine (oblique view provided by 2090720 Ontario Inc.)

    Much of the land around the Kidd Creek deposit has been tightly held by many of the original owners since the discovery of the mine. Some of the land was explored in the early 1960's and has remained dormant since that time.

    The Kidd Property was originally explored by Bunker Hill at the time of the Kidd Creek discovery. Records show that twelve (12) diamond drill holes were put into this block to test various EM and induced polarization anomalies. Assessment files that describe this work are summarized in appendix 2. The location, azimuth, inclination and length of drill holes, extracted from sketch maps in these assessment files, are listed in appendix 2.

    Although lithologies are favourable for VMS deposits, massive sulphides were not found in any of these 12 drill holes. Some of the holes were explained by graphite. Geophysical methods of the time would have beeJl sorely tested by thick, conductive overburden. On average, the overburden in these 12 drill holes was 45 m thick. Range was 25 to 71 m. This is an ideal setting for VTEM.

    The area was flown with Megatem in 2002. Although Megatem and VTEM have similar penetration, VTEM can locate steeply dipping thin sheet type conductors under 50 m of conductive overburden with surprising accuracy. In such settings, drill testing such targets based on VTEM alone is often possible.

    The Chance deposit, a small, high grade VMS deposit just east of the Kidd Property, was discovered in the mid 1970s. Despite 40 m of conductive overburden, it is marked by a high conductance VTEM anomaly separate from a formational conductor 175 m to the west (appendix 3). It is in an area of a confused cluster of Megatem anomalies that is difficult to separate from those from the formational conductor.

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    2. Conductors

    Within the claim block, EM anomaly strings and named bedrock conductors are concentrated within or on the edge of claims 4211459 (conductors C1 to C5) and 4211462 (conductors C6 and C7) . Conductors C1 to C5 and drill holes F1 and F4 to F9 are shown with the total magnetic intensity contours in figure 4. Conductors C6 and C7 and drill holes F2, F3, FlO, F11 and F12 are shown with total magnetic intensity contours in figure 5.

    VTEM anomaly centers with a dip indication (central orange cross) represent steeply dipping thin sheet conductors. In most cases, the anomaly center should be within metres of the leading or upper edge of the conductor. Conductor form and location are more speculative under VTEM anomalies with no dip indication. In the description of each conductor that follows, VTEM anomaly centers are identified by flight line and ID (appendix 1, table 3).

    Figure 4. TMI with conductor labels and drilling, north part

    C1 : 1000A, 10108, 1020A

    This conductor is largely north of the claim block and is open to the northwest. It sits on the northeast flank of a 50 nT magnetic high. Based on amplitude and clarity, the best of the set is 1010B - it suggests a thin sheet conductor with an intermediate dip to the northeast at an estimated depth of 45 m. Conductance is very high (49.1 S dB/dt).

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    .. vx C2 : 1040B, 1050A, 1060C, 1070B

    C2 is a 300 m long conductor that crosses the northeast corner of claim 4211459. All 4 EM anomalies suggest a vertical thin sheet conductor. In terms of EM anomaly amplitude, clarity and quality, 1050A is the best of the set. Based on peak separation, the depth is 40 m. Conductance is high (43.2 S dB/dt). C2 has no clear magnetic expression.

    C3 : 1040A, 1050B

    C3 is made up of two positive EM peaks with little indication of conductor form, location or depth. C3 may be over the down dip side of a northwest extension to C5. Alternatively, 1040A and 1050B are due to particularly thick or conductive overburden. Over most of the survey, elevated early time EM channels are consistent with some thickness of conductive overburden. Strong bedrock conductors that are not steeply dipping thin sheets are recognizable only at late times. This gets difficult in that grey area where overburden conductivity and conductor conductance get too close.

    C4: 1060B,1070C, 1080B,1090B, 1100B, 1110B

    C4 is a 500 m long conductor axis in a mixed magnetic setting. All EM anomalies suggest a near vertical thin sheet conductor. The best ofthe set are 1070C and 10808. Estimated depths are 55 m (1070C) and 70 m (1080B). dB/dt conductance estimates are 32.5 S (1070C) and 24.6 S (1080B). Drill holes F7, F8 and F9 as plotted would not have intersected C4. If drill testing C4, a drill set 75 m northeast of 1070C and inclined to the southwest might be considered. Collar at 469636 e, 5394414 n, azimuth 225°, inclination -50°, length to 150 m.

    C5: 1060A, 10700, 1080A, 1090C, 1100A, 1110C, 1120A, 1130B, 1140B

    This string of 9 VTEM anomaly centers has been grouped into one conductor axis but it might better be separated into two short conductors, each associated with its own magnetic high. The connecting EM anomalies 1080A and 1090C are nondescript weak positive peaks of an uncertain cause.

    The northwest part of C5 is defined by 1060A and 1070D on the western edge of a 135 nT magnetic high. Drill holes Fl, F4, F5 and F6 as plotted would not have intersected C5. 1060A suggests a near vertical thin sheet conductor at 30 m depth. 1070D suggests a conductor with an intermediate to steep dip to the northeast at 45 m depth. Conductance estimates are not high (12.3 and 17.6 S). 1070D has the better magnetic expression. If drill testing this part of C5, a drill 75 m northeast of 1070D and inclined to the southwest might be considered. Collar at 469333 e, 5394108 n, azimuth 225°, inclination -50°, length to 150 m.

    The best EM/magnetic anomalies of those that make up the southwest part of C5 are 1100A and 1110C. Both are at or near the peak of a 115 nT magnetic high of similar dimensions. The conductor is near vertical and is at an estimated depth of 70 m (1100C). dB/dt conductance estimates are moderate to strong -15.7 S (1110C) and 23.3 S (1100A). Strike length and magnetic setting make this one of the better airborne targets in the claim block. If drill testing this part of C5, the drill might be set 100 m northeast of the mid point between 1100A and 1110C. Collar at 469718 e, 5394000 n, azimuth 225°, inclination -50°, length to 200 m. The proposed collar is within a few metres of the claim boundary as taken from the MNDM claimap3 website.

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    Figure 5. TMI with conductor labels and drilling, south part

    C6: 1170A, 1180B, 1190B, 1200B, 1210A, 1220B, 1230C, 1240B, 1250B, 1260C, 1270C, 1280C, T1510A

    C6 is a 1 km long conductor open to the southeast. It is made up ofVTEM anomalies that range from very weak in the north to strong in the south. C6 has no clear magnetic expression. Its southern part is east of a 75 nT magnetic high. The conductor appears to be at depth - the depth estimate for 1240B is over 100 m. Bunker Hill drill holes FlO, Fll and F12 as plotted may have intersected C6 near the end of hole. Strike length and a neutral magnetic setting make this a second priority airborne target.

    C7 : 1270B, 1280D

    C7 is made up of two positive EM peaks with little indication of conductor form, location or depth. As with C3, these may be overburden anomalies.

    3. Possible Kimberlite Pipe

    The circular 50 nT magnetic high on the border between claims 4211460 and 4211461 (figure 6) might be considered as representing a possible kimberlite pipe. From the vertical gradient, the apparent diameter of the source is 200 m. As with other circular magnetic highs in the region, it is covered by Keating kimberlite coefficient anomalies (appendix 4). The target is

    2090720 Ontario Inc. JVX 9-21

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    under a swampy area of similar dimensions. Early time EM levels over the target are at least as high as anywhere else in the survey - 50 m of overburden is likely. The target center is near 468900 e, 5393290 n.

    Figure 6. TMI, center part

    4. Conclusions

    Results from a recent 95 line km VTEM survey over the Kidd Property have been reviewed. 7 bedrock conductors within or on the edge of the claim block have been identified. Drill holes from 1964 may have come close to some of these conductors but uncertainties in location leave this largely unresolved. Geophysical methods of the time would have been tested by 40 to 50 m of overburden.

    Of the 7 named conductors, the two short conductors that make up C5 may be the most interesting. Despite modest conductance estimates, they have the best magnetic setting. Suggestions for drill testing both are made.

    A circular magnetic high within the claim block might be considered as a possible kimberlite pipe.

    One target outside the claim block deserves mention. It is 1190A at the center of a 200 m long, east/west trending conductor southwest of the claim block. 1190A represents a thin sheet type conductor with a steep dip to the southwest. The estimated depth is less than 25 m. The conductor has a coincident 15 nT magnetic high. The dB/dt conductance estimate is 20.5 S.

    Ian Johnson Ph.D., P.Eng. May 4, 2009

    2090720 Ontario Inc. JVX 9-21

    Blaine Webster 8. Sc., P. Geo.

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    Certificates of Qualifications

    Blaine Webster President· JVX Ltd.,

    60 West Wilmot Street, Unit 22 Richmond Hill, Ontario L4B 1 M6

    Tel: (905) 731·0972 Email: [email protected]

    I, Blaine Webster, B. Sc., P. Geo., do hereby certify that

    1. I graduated with a Bachelor of Science degree in Geophysics from the University of British Columbia in 1970.

    2. I am a member of the Association of Professional Geoscientists of Ontario.

    3. I have worked as a geophysicist for a total of 38 years since my graduation from university and have been involved in minerals exploration for base, precious and noble metals and uranium throughout much of the world.

    4. I am partly responsible for the overall preparation of this report. Most of the technical information in this report is derived from information provided by 2090720 Ontario Inc.

    Blaine Webster, B. Sc., P. Geo.

    Ian Johnson R R 2 Aylmer, Ontario N5H 2R2

    Tel: (519) 773·2932 Email: [email protected]

    I, Ian Johnson, Ph. D., P. Eng., do hereby certify that

    1. I graduated with a Bachelor of Science degree in Geophysics from the University of Western Ontario in 1968 and a Doctorate degree in Geophysics from the University of British Columbia in 1972.

    2. I am a member of the Association of Professional Engineers of Ontario.

    3. I have worked as a geophysicist for a total of 31 years since my graduation from university and have been involved in minerals exploration for base, precious and noble metals and uranium throughout much of the world.

    4. I am partly responsible for the overall preparation of this report. Most of the technical information in this report is derived from information provided by 2090720 Ontario Inc.

    Ian Johnson, Ph. D., P. Eng.

    2090720 Ontario Inc. JVX 9-21

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    Appendix 1 : VTEM Survey

    A helicopter EM (VTEM) and magnetic survey was flown by Geotech for 2090720 Ontario Inc. over a 10 km2 area centered 25 km north northwest of Timmins and just west of the Kidd Creek mine (figure 1). The survey area includes claims 4211459 to 4211462. The survey was flown in December, 2008. The Geotech report is dated February, 2009. The Geotech job number is 8258. Total production was 95 km on northeast lines at 100 m. The results were presented at 1:10,000. Map types are

    total magnetic intensity dB/dt offset profiles B field offset profiles + total magnetic intensity VTEM BF25 (1.641 msec)

    All maps show flight path. a topographic base and claim fabric taken from the MNDM claimap3 website.

    Figure 1. Flight path (figure 2 from the Geotech report)

    Following delivery of the report, maps and databases from Geotech. they were asked to pick EM anomalies representing probable bedrock conductors and to add annotated EM anomalies to the maps and database. A revised set of maps were provided. Scale. layout. flight path. topographic base and claim fabric are the same as in the original map set. Map types are

    total magnetic intensity + EM anomaly centers calculated vertical magnetic gradient + EM anomaly centers dBI dt offset profiles + EM anomaly centers

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    Appendix 1 : VTEM Survey

    B field offset profiles + total magnetic intensity + EM anomaly centers VTEM BF26 (1.953 msec) + EM anomaly centers

    The map showing total magnetic intensity contours with EM anomaly centers is shown in figure 2. VTEM EM anomaly symbols are shown in figure 3. EM anomaly centers are listed in table 3.

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    Figure 2. Total magnetic intensity with EM anomaly centers

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    Average, minimum and maximum values of the total magnetic intensity (TM.I), the digital elevation model (OEM), EM sensor terrain clearance and VTEM EM channel BF26 * 100 over the 44,913 values in the database are listed in table 1. Units are nT (TMI), metres (DEM), metres (radarb) and pVmsec/ Am4 (BF26).

    Mean I Minimum Maximum TMI 56,791 I 56,695 57,147 OEM 277 I 268 282

    radarb 38 I 32 62 BF26*100 1.5 I -0.3 29.5

    Table 1. Database statistics

    The power line monitor shows nothing over the claim block. There are power line responses in the eastern part ofthe survey - at the ends of lines 1210 to 1280. UTM coordinates of the center of the power line response and a nearby EM anomaly are listed in table 2. As there is no increase in EM sensor terrain clearance over these power line responses, the power line (if there) is local. The power

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    Appendix 1 : VTEM Survey

    line responses are often asymmetric and of the same shape as the nearby VTEM EM anomaly. All of this suggests this is not a power line but a formational conductor energized at 60 Hz from grounded electrical noise from the Kidd Creek mine.

    Line Power Line EM AnomallJ Center UTMe UTM n 10 UTMe UTM n

    1210 470912 5393704 1220 470937 5393593 A 470945 5393600 1230 470980 5393493 D 470996 5393509 1240 471055 5393424 A 471056 5393426 1250 471069 5393294 D 471088 5393313 1260 471094 5392184 A 471105 5393195 1270 471196 5393148 E 471209 5393161 1280 471326 5393136 A 471325 5393135

    Table 2. Power line responses

    Geotech picked 83 EM anomalies . There are 2 types -

    - a single positive EM peak that may represent a flat lying to intermediate dipping conductor (dip < 60°), the top of a broad conductor or any number of irregular conductors. Confidence in conductor form, location and depth is usually low. These are type K for 'thick' sheet in table 3. The EM anomaly center is at the EM peak. Conductance estimates and amplitudes are taken at the EM peak. 13 of th e 83 EM anomaly centers represent 'th ick' conductors.

    - a double peak EM anomaly that may represent a steeply dipping thin sheet conductor. These are type N for 'thin' sheet in table 3. The EM anomaly center is at the leading or upper edge of the conductor. Conductance estimates and amplitudes are taken at the stronger EM peak. Plotted EM anomaly centers show dip sense. Confidence in conductor location, form and depth is usually high. 70 of the 83 EM anomaly centers represent steeply dipping thin sheet type conductors. Of these, 8 are shown as vertical.

    EM Anomaly Symbols

    Conductance < 5.0 siemens -¢-5.0 < Conductance

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    Appendix 1 ; VTEM Survey

    the dBjdt decay (CondSF) is 23.0 S. Range is 6.1 to 59.1 S. The average conductance estimate from the B field decay (CondBF) is 37.2 S. Range is 6.8 to 91.8 S. [t is common for CondBF to be about twice CondSF. Anything over 20 S is usually considered strong. Anything over 50 S is very strong and is often of immediate exploration interest.

    The average BF26xl00 is 5.1 pVmsecjAm4. Range is 0.1 to 29.3 pVmsecjAm4. Shallow, strong flat lying or flat topped conductors should generate BF26xl00 peaks of more than 250 where shallow means 10 m or less and strong means a conductance of at least 20 S. Lower peak BF26 values usually mean greater depth of burial.

    Amplitudes are as recorded - no attempt has been made to separate the EM responses from the conductor and from the overburden. Independent of geometrical attenuation, thick conductive overburden tends to reduce overall time constants and may lead to lower conductance estimates.

    Line [0 UTMe UTMn BF26x100 CondSF CondBF Type Oip Grade 1000 A 469019 5394781 6.5 36.4 72.7 N 72 ne 5

    B 469552 5395319 3.6 20.1 20.9 N 85 ne 4 1010 A 469627 5395253 3.5 19.1 19.7 N 90 3

    B 469139 5394763 10.1 49.1 88.2 N 76 ne 5 1020 A 469207 5394688 2.7 25.5 91.8 K 4

    B 469721 5395201 2.9 18.1 20.8 N 81 sw 3 1030 A 469810 5395151 1.2 15.9 22.7 N 81 sw 3 1040 A 469142 5394342 1.8 17.1 21.7 K 3

    B 469578 5394776 4.0 30.1 58.6 N 88 ne 4 C 469881 5395076 1.0 12.2 40.2 N 88 ne 3

    1050 A 469648 5394707 10.6 43.2 51.0 N 90 5 B 469237 5394295 6.4 21.2 23.9 K 4

    1060 A 469237 5394152 1.9 12.3 19.7 N 81 ne 3 B 469496 5394409 6.9 30.2 43.2 N 72 ne 4 C 469705 5394619 10.1 36.3 49.6 N 87 sw 5 D 470040 5394960 1.4 13.0 30.6 N 90 sw 3

    1070 A 470117 5394891 1.6 15.3 27.4 N 79 sw 3 B 469775 5394551 8.3 33.6 53.9 N 83 sw 4 C 469583 5394361 9.2 32.4 44.6 N 79 ne 4 D 469280 5394055 3.1 17.6 30.9 N 69 ne 3

    1080 A 469386 5394022 1.0 14.5 19.5 K 3 B 469663 5394300 6.0 24.6 32.0 N 81 ne 4 C 470166 5394799 2.1 19.9 37.7 N 85 sw 3

    1090 A 470214 5394706 2.8 17.8 26.8 N 87 ne 3 B 469757 5394250 4.1 24.3 34.2 N 86 ne 4 C 469494 5393986 1.1 14.2 39.7 K 3

    1100 A 469600 5393950 2.6 20.4 26.0 N 77 ne 4 B 469843 5394194 2.7 19.2 24.1 N 85 ne 3 C 470273 5394626 3.5 22.8 44.3 N 84 ne 4

    1110 A 470329 5394536 2.8 23.3 51.5 N 89 ne 4 B 469971 5394184 1.7 16.0 22.9 N 86 ne 3 C 469694 5393906 1.4 15.7 25.2 N 90 3

    1120 A 469784 5393849 1.2 13.8 16.0 N 90 3 B 470390 5394457 2.2 19.9 32.2 N 86 sw 3

    1130 A 470434 5394354 3.7 24.8 31.7 N 89 ne 4 B 469878 5393806 0.8 11.3 17.3 N 90 3

    1140 A 469936 5393723 0.6 10.6 16.9 N 90 3 B 470506 5394292 9.3 25.2 35.4 N 80 ne 4

    1150 A 470560 5394202 4.2 24.6 37.6 N 84 ne 4 1160 A 470668 5394156 4.7 23.0 34.2 N 83 ne 4 1170 A 470006 5393368 0.2 7.3 9.5 N 87 2

    B 470744 5394104 5.1 24.7 40.7 N 86 ne 4 1180 A 470794 5394012 13.1 42.9 63.3 N 86 ne 5

    B 470044 5393264 0.1 6.1 7.2 N 84 ne 2 C 468820 5392040 1.4 17.9 18.8 N 70 ne 3

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    Appendix 1 . VTEM Survey

    Line 10 UTMe UTMn BF26x100 CondSF CondBF T~e Dip Grade 1190 A 468935 5392019 4.4 20.5 22.8 N 73 ne 4

    B 470076 5393161 0.2 6.6 6.8 N 79 ne 2 C 470860 5393938 29.3 45.9 62.1 N 79 sw 5

    1200 A 470924 5393854 24.5 48.6 57.5 N 82 ne 5 B 470138 5393077 0.3 7.9 8.4 N 77 ne 2 C 469063 5392000 0.5 10.9 12.2 N 85 sw 3

    1210 A 470172 5392967 0.3 7.4 7.7 N 79 ne 2 B 471034 5393829 17.3 59.1 82.3 N 82 sw 6

    1220 A 470945 5393600 11.2 43.8 76.0 N 85 ne 5 B 470209 5392863 0.6 9.2 12.0 N 86 ne 2 C 469397 5392052 1.1 15.3 32.8 N 79 sw 3

    1230 A 469509 5392022 1.1 18.4 21.0 N 80 sw 3 B 469685 5392199 0.5 10.2 14.8 K 3 C 470280 5392791 1.7 22.5 41.8 N 90 4 D 470996 5393509 8.8 21.2 39.9 N 86 ne 4

    1240 A 471056 5393426 7.1 17.1 35.2 N 89 ne 3 B 470328 5392698 1.5 17.8 31.3 N 88 ne 3 C 469179 5391545 1.1 15.0 57.0 N 89 ne 3

    1250 A 469251 5391480 0.5 6.1 16.2 K 2 B 469752 5391978 0.8 16.3 18.6 K 3 C 470363 5392593 1.9 17.8 38.9 N 83 ne 3 D 471088 5393313 7.6 19.3 45.4 N 84 ne 3

    1260 A 471105 5393195 11.8 22.5 87.1 N 72 ne 4 B 470765 5392854 5.3 37.3 52.6 N 90 sw 5 C 470420 5392505 3.4 25.4 71.6 N 86 ne 4 D 469860 5391945 2.2 21.0 25.6 K 4

    1270 A 469924 5391872 2.6 22.9 28.5 N 85 ne 4 B 470319 5392258 8.9 36.8 58.7 K 5 C 470486 5392427 6.7 30.9 46.0 N 85 ne 4 D 470828 5392775 14.4 42.4 56.4 N 84 ne 5 E 471209 5393161 8.2 17.9 42.7 N 77 ne 3

    1280 A 471325 5393135 6.4 17.9 35.9 N 87 ne 3 B 470889 5392694 20.2 43.3 53.8 N 89 ne 5 C 470521 5392325 11.0 31.6 46.1 N 84 sw 4 D 470349 5392154 11.2 42.4 55.8 K 5 E 469979 5391783 2.0 19.4 28.9 K 3

    T1500 A 469354 5392049 1.4 18.1 30.5 N 83 se 3 T1510 A 470531 5392286 13.6 40.7 51.0 K 5

    Table 3. EM anomalies

    As part of the EM anomaly picking, Geotech amended the database to show the last channels of 4 used to calculate the time constant (NchanSF, NchanBF), the time constants (TAUsf, TAUbf), the conductance estimate taken from the time constant (CONDsf, CONDbf), an anomaly channel (anoms) and the BF26 amplitude. The time constant calculation is described in an appendix to the Geotech report. Geosoft databases may be opened and EM channels displayed as profiles using the freely available Geosoft viewer.

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    Appendix 2 : Exploration History and Drilling

    Claims 4211459, 4211460 and 4211463 were explored by Bunker Hill Extension Mines Ltd. shortly after the Kidd Creek discovery in 1963. Assessment files show twelve (12) drill holes from 1964 to test various EM and induced polarization anomalies in these claims. There are drill logs for the first three holes (B-1, B-2 and B-3). The rest of the holes were drilled by Bunker Hill but do not appear to have been reported in the Bunker Hill assessment file (file T -805). Drill holes 4 to 12 have been taken from Hollinger Mines assessment file compilation maps (Files T -1790 and T-3646) with limited information and no logs. Assessmentfiles are T-805 from Bunker Hill (AFRI files 42A11NW0573 and 42A11NW0987), T-1760 from Hollinger Mines (AFRI files 42AllNW0559 and 42A11NW0560) and T-3546 from Homestake.

    AFRI File: 42AllNW0573 AFRO ID : 63.1337 For: Bunker Hill Extension Mines Ltd. Area: claims 4211459 and 4211460 - units P56076 to P56083 (12 units)

    claim 4211462 - units P55982, P55983, P56000 and P56001 (4 units) Includes summary report by WGM dated August 17, 1964 plus reports on gradient array IP/resistivity surveys on 2 grids (total 17,830 m) and three drill holes (B-1, B-2 and B-3).

    AFRI File: 42AllNW0987 AFRO ID : 10 For: Bunker Hill Extension Mines Ltd. Area: claim 4211462 - units P55982 and P5600 and claim 4211459 - unit P56077 Drill logs for B-1 in P56077, B-2 in P55982 and B-3 in P5600. Includes sketch maps of each claim unit with the drill hole.

    AFRI File: 42AllNW0559 AFRO ID : 2.2737 For: Hollinger Mines Ltd. Area: claim 4211461 - units P452575, P452576, P452595 and P452596 Report on HLEM surveys, July 6,1978. EM-17 with a 400 ft coil spacing at 1600 Hz, 8850 m.

    AFRI File: 42AllNW0560 AFRO ID : 2.2333 For: Hollinger Mines Ltd. Area: claim 4211461 - units P452575, P452576, P452595 and P452596 Report on magnetic surveys, March 16, 1977,8850 m. Includes a map showing four drill holes labeled B-1, B-4, B-10 and B? in neighbouring Bunker Hill claims.

    Kevin Filo of 2090720 Ontario Inc. has identified the 12 drill holes by Bunker Hill Extension Mines Ltd. from various sketch maps in these assessment files and has provided best estimates of locations, azimuths, inclinations and lengths. His findings are summarized in table 1. His notes for each hole follow.

    In table 1, the hole number (F1 to F12) has been assigned by Kevin Filo. Ref. is the hole number as shown in sketch maps from Bunker Hill (B-1, B-2, B-3, B-4, B-10, B?) or Hollinger Mines (H-1 to H-14). UTM coordinates are NAD83, Z17N. Lengths are in metres. Dip information is not available for drill holes taken from Hollinger maps. For these holes, (H-1 to H-14), lengths are as project to surface. Lengths if the hole was inclined at -500 are shown in brackets.

    'ov' in table 1 is the overburden thickness in metres as shown on sketch maps. These numbers are consistent with overburden thicknesses from drill logs for B-1, B-2 and B-3.

    Ref.Pt. in table 1 is the sketch map reference point from which all drill holes are located. Reference Point A is the No.1 Post of claim 4211461(51/2 5W1/4 Con VI Lot 8) at 468919 e 5393876 n. Reference point B is the No.3 Post of claim 4211462(51/2 5W1/4 Con V Lot 7) at 469715 e, 5392263 n.

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    Appendix 2 : Exploration History and Drilling

    Hole Ref. UTMe UTM n azimuth dip length ov claim Ref.Pt. F1 8-1 469244 5394195 360 -60 213 37 4211460 A F2 8-2 469837 5392617 360 -50 131 33 4211462 8 F3 8-3 469837 5382739 360 -50 160 25 4211462 8 F4 8-10 469248 5394254 270 -60 169 31 4211460 A F5 8? 469264 5394205 270 -60 137 33 4211460 A F6 8-4 469057 5394205 90 -65 192 69 4211460 A F7 H-8 469532 5394381 30 - 79(123) 51 4211460 A F8 H-12 469337 5394425 30 - 122 (190) 33 4211460 A F9 H-7 469617 5394504 180 - 107 (16n 44 4211460 A F10 H-11 470197 5392653 90 - 152123n 57 4211462 8 F11 H-14 470166 5392769 105 - 140 (218) 56 4211462 8 F12 H-1 470349 5392605 160 - 91 (142) 71 4211462 8

    Table 1. Drill holes

    Fl(B-l) • Intercalated suite of mafic and felsic volcanics with some sulphides (chalcopyrite and

    pyrrhotite) in blebs and stringers • Overburden 0 to 140ft downhole. • 547-562 ft; sheared andesite with possible graphite on slip planes • 645-698 ft; agglomerate and tuff with shears with possible graphite on slip planes

    F2 (B-2) • Basically andesite and dacite in the drill hole; no mineralization of interest. Fault? with sand

    and water or seam at 324 to 326.5 ft.

    F3 (B-3) • Basically andesite and no mineralization; overburden depth down hole was 0 to 107 ft.

    F4 (B-I0) • Mainly dacitic volcanics, overburden 0 to 125 ft. • 225 to 325 ft is a dacite fragmental with silicious graphitic matrix and course blebs of

    pyrrhotite • 325 to 425 ft. is mainly graphitic tuff with minor dacite mineralized with pyrrhotite

    F5 (B ?) • Hole basically unmineralized andesite.

    F6 (B-4) • Generally dacitic rock (felsic) with some pyrrhotite mineralization • 150-165 ft. graphitic tuff • 165-200 ft. dacite and dacitic andesite fragemental in graphitic matrix • 357-425 ft. lithic tuff in graphitic matrix • 425-542 graphitic tuff with some pyrrhotite and chalcopyrite

    F7 (H-8) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. Hole sketch shows 'gf or graphite. Similar volcanics to those found in the Bunker Hill logs.

    F8(H-12) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. Hole sketch shows 'gf or graphite. Similar volcanics to those found in the Bunker Hill logs.

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    Appendix 2 : Exploration History ,md Drilling

    F9 (H-7) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. Hole sketch shows 'gf or graphite. Similar volcanics to those found in the Bunker Hill logs.

    FlO (H-ll) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. No graphite or sulphides indicated.

    Fll (H-l4) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. Some graphite and sulphides indicated.

    Fl2 (H-l) No drill logs were found for this hole, just a vertical projection to surface. Limited nomenclature along the holes is the same nomenclature as used for some other Bunker Hill holes. Some graphite indicated ..

    Summary

    - holes Fl, F4, FS and F6 are all drilled in the same area. These holes appear to have evaluated the one conductor that they are clustered around. The cause of this conductor was graphite bands. The holes intersected felsic volcanics which have an important relationship to VMS deposits like Kidd Creek and Chance. Some minor chalcopyrite was noted in Fl in a small rhyolitic section of the hole.

    - holes F2 and F3 were drilled to evaluate induced polarization targets. These holes failed to explain the cause of the IP anomalies. The holes did intersect some dacite suggesting the presence of some intermediate to felsic volcanics in this portion of the property as well.

    - holes F7 and F9. Limited information from the Hollinger compilation map shows these holes intersected some graphite.

    - hole F8 does not appear to have intersected any conductor.

    - holes FlO, Fll and F12 intersected some graphite according to limited information.

    From Kevin Filo - 'Limited drill data suggests a favorable lithology for VMS deposits on the property. From the various orientations of drilling it is evident that there is likely some folding on this property and the actual strike orientation ofthe geology may be somewhat complicated.'

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    Appendix 3 : The Chalnce VMS Deposit

    In the mid 1970s, a small, high grade lead-zine-silver deposit was discovered by Chance Mining and Exploration 2 km northwest of the Kidd Creek mine. The Chance deposit consists of two closely spaced sulphide lenses that are near vertical and under about 40 m of overburden. The lenses reside in a zone that is 80 m long, 5 m wide and runs to a depth of about 250 m. In 1999, Falconbridge calculated an inferred resource estimate of 176,900 tonnes grading 12.8% Zinc, 3.24% Lead and 178 g/t Ag.

    In 1999 Opawica Explorations Inc. entered into an option and joint venture agreement with Falconbridge Limited (now Xstrata PLC) on the Chance property. The property includes 51/2, Lot 6, Conc 6 and N1/2, Lot 6, Conc 5 (figure 1).

    From figure 1, the deposit is near the southern boundary of lease claim P56133. From this, the center of the deposit is estimated at 47 1140 e, 5393853 n. From a sketch map in the July 19, 1985 issue of the Northern Miner, the deposit is estimated to be centered at 470980 e, 5393939 n. From this same sketch, the deposit is 180 m east of a north northwest trending band of argillites/greywacke.

    Both estimates for the position of the Chance deposit are within the area of the VTEM survey and near the northeast end ofline 1210. The average estimate of position, 471060 e, 5393896 n, is 25 m northwest ofVTEM line 1210 at closest approach.

    Figure 1. From www.opawica.com

    The Chance deposit (at 47 1060 e, 5393896 n) is shown as a green cross on the magnetic map from the VTEM survey (figure 2). The nearby VTEM EM anomaly center (1210B) represents what Geotech suggests is a thin sheet conductor with a steep dip to the southwest. Conductance estimates are very high (59.1 5 dB/dt, 82.3 5 B).

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    Appendix 3. The Chance VMS Deposit

    The EM profiles suggest another conductor 175 m to the southwest. This was not picked by Geotech but would be the logical continuation of a formational conductor with a steep dip to the northwest. A power line response centered 178 m southwest of 1210B may represent the formational conductor energized by grounded 60 Hz noise from the Kidd Creek mine.

    Figure 2. Chance VMS deposit (green cross) with TMI

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    Appendix 4 : 2002 Megatem Survey

    The area was surveyed with Megatem in February/March, 2002 as part of larger regional survey COGS MNDM GDS 1041, 'Timmins Megatem'). This survey covered some 1500 km2 (figure 1) with a survey total of 11,173 line km. The Kidd Property is in block Ai (figure 2).

    81"y)W

    02 4 68\0

    Kllorn III's

    MABEE

    8' · 16'W

    NNOX

    NES8.(,TTBEC~ IONG~BJN MAN

    CUFF

    GEARY ELM~A

    CRAWFO.ROlU~

    80 46'W

    ~~~--~----------~--------~~~~~~--------~~

    Figure 1. 2002 Megatem SUlVey

    Figure 2. 2002 Megatem SUlVey

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    Appendix 4 : 2002 Megatem Survey

    Block B was flown with traverse lines at 150 m and tie lines at 2000 m. Block A was flown at 125 m with tie lines at 2000 m. BlockA was flown at 125 m with tie lines at 200 m. Traverse lines are at 10° /190°, all blocks.

    The results were presented in a series of paper maps at 1:20,000 and 1:50,000 and GeoTIFF images of the whole block. The 1:20,000 maps show flight path, residual TMlline contours, EM anomaly centers and Keating kimberlite coefficient anomalies. Map sheet layout for the 1:20,000 maps is shown in figure 3. The Kidd Property is in map 81 729 (figure 4). Megatem EM anomaly center symbols are shown in figure 5.

    OPEN FILEIOOSSIER PUBliC

    NTSlSNRC 4438 4441

    42 Af14NE

    81735

    MAP/CARTE

    4440 4439

    42 Af14SW 42 Af14SE --1rT~ __ 81733 -, -4435 4434

    42 Af11N

    81729 81 728

    Figure 3. 1 :20,000 map sheet layout and map sheet numbers

    1:50,000 maps and GeoTIFF image types are residual magnetic field, colour and line contours + EM anomaly centers shaded colour image of the second vertical derivative of the magnetics + Keating kimberlite coefficient anomalies EM X-coil decay constant, colour and line contours + EM anomaly centers apparent conductance, colou r and line contours + EM anomaly centers

    Profiles data (EM, magnetics, EM anomalies, Keating kimberlite coefficient anomalies) are provided in Geosoft databases.

    The results are presented in NAD27, Z17N. The point 81.411 0 west, 48.694°, 277 m amsl is defined by 469754 e, 5393303 n (NAD27) and 469755 e, 5393522 n (NAD83).

    Reference

    Ontario Geological Survey 2002. Ontario airborne geophysical surveys, magnetic and electromagnetic data, Timmins area MEGATEM®; Ontario Geological Survey, Geophysical Data Set 1041.

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    Appendix 4 : 2002 Megatem Survey

    _ 0_'- _ ...... _ .. ___ ..... -_. - ~-~~ .. --.. -..... --

    Figure 4. 1 :20,000 map 81 729

    ELECTROMAGNETIC ANOMALY SYMBOLS SYMBOLES ANOMALIES ELEClOMAGNETIQUES

    Anomaly Conductance

    Anomalia

    • :>30S e 20 - 30 S ( ",: 15 - 20 S

    'l:: B -10 S t ' · ... 3 - 8S "- "

    (~'. " 1 - 3 S

    ~ Surfi:::ial Corductor Conductaur "superficial

    E Cul tural Anth 'opique Figure 5. Megatem EM anomaly center symbols

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    -=-...:=:~

    ~=-:.:?

    r':l t=-_

    3

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    Appendix 4 : 2002 Megatem Survey

    Part of the map showing Megatem and VTEM EM anomaly centers is shown in figure 6. The large number of Megatem EM anomaly centers is because this area was flown east/west at 125 m and north/south at 200 m. Annotations on the Megatem EM anomaly centers are written parallel with the flight path.

    The comparison between the two EM anomaly sets over what Geotech suggests are strong, steeply dipping thin sheet conductors is good. There is the usual scatter of up to ± 50 m of the Megatem EM anomalies relative to the conductor axes as represented by the VTEM EM anomalies. There are a number of weak Megatem EM anomalies with no VTEM picks. There are a few strong EM anomalies of each type with no picks of the other type. In this area, Megatem and VTEM appear to have equal penetration. VTEM provides a more accurate placement of conductor axes and gives dip. The VTEM results are easier to read.

    Figure 6. Section of map showing Megatem and VTEM EM anomaly centers

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