42A05SW2001 2.18943 HILLARY

C

010

REPORT ON

GEOPHYSICAL WORK

KELLY CREEK PROPERTY

HILLARY TOWNSHIP

for

ELCAJUN RESOURCES LTD

OCTOBER 1998

LlVt-U

CCT o o \:.:"iGEOSCIENCFfSFESMENT

O (K '.

D. LONDRY

SUMMARY AND RECOMMENDATIONS *f

During July 1988, magnetic and VLF surveys were carried out over the Kelly Creek property in Hillary

Township for Elcanjun Resources Ltd.

High magnetic anomalies on the property map north-south striking diabase dikes and a high amplitude

VLF anomaly coincides with the creek on the property and likely has a surficial source; other weak VLF

anomalies strike east-west and would need further work to determine their significance.

It is recommended that Line 400 West and 300 West are cut from 200 North to 600 South and

covered with a horizontal loop EM survey using a short coil separation; this will determine the

conductivity of the zones mapped by the VLF survey. An induced polarization (IP) survey would

determine if these anomalies have a bedrock source.

The increase in the in-phase VLF component to the southeast on Lines 200 and 400 West suggests a

conductive source to the southeast. The magnetic ans VLF survey should be extended in that direction

to at least 800 South on Lines 200 to 400 West inclusive.

42A05SW2001 2.18943 HILLARY 010C

ii '' -" "f.

TABLE OF CONTENTS

page

Summary and Recommendations..................................................................................................... i

Introduction ....................................................................................................................................... 1

General Geology ............................................................................................................................... 3

Previous Work .................................................................................................................................. 3

Survey Descriptions........................................................................................................................... 3

Magnetic Results.............................................................................................................................. 4

EM Results....................................................................................................................................... 4

References...................................................................................................................................... 10

LIST OF FIGURES

page

1.(a) Location Map............................................................................................................................ 2

(b) Claim Map................................................................................................................................. 2

2. Contoured total magnetic Field ...................................................................................................... 5

3. Posted VLF Data ............................................................................................................................. 7

4. VLF Survey ..................................................................................................................................... 8

5. VLF Field Strength .......................................................................................................................... 9

LIST OF TABLES

page

1. Claim Description ............................................................................................................................ 1

INTRODUCTION

Magnetic and very low frequency (VLF) EM surveys were carried out on the Kelly Creek property

during July of 1998 for Elcajun Resources Ltd.. The purpose of the surveys was to try and map the

source of mineralized boulders which have been discovered on the property.

The property is located in the northwest corner of Hillary Township, approximately 45 kilometres

southwest of the city of Timmins, Porcupine Mining Division (Figure 1(a)). It is accessed by travelling

west from Timmins on Highway 101 which cuts through the southeast corner of the property; a gravel

road which runs north from the highway provides access to the center of the claim group.

The property consists of fifteen claims (Figure 1(b)) which are comprised of a total of forty-five, 40

acre claim units (Table 1).

The surveys were carried out by J. DerWeduwen of South Porcupine, Ontario.

CLAIM*

1127264

1127265

1187097

1218811

1219382

1226340

1226341

1228260

1228720

1228721

1228722

1228798

1228988

1228989

# Of UNITS

1

1

2

4

4

4

4

3

3

2

3

4

3

3

DESCRIPTION TOWNSHIP

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Hillary

Table 1 : Property Description

Figure l (a) : Location Map

Sod* : l Inch . 4O chains

Figure l (b) : Claim Map

GENERAL GEOLOGY

The geology of Hillary Township is presented on map 2205 at a scale of 1 inch to 4 miles (Pyke,

1973).

Most of the township is underlain by felsic intrusives, however narrow bands of Archean volcanics do

occur in the northwest corner, in the vicinity of the Kelly Creek property. All of the rocks have been

intruded by north-south striking Matachewan diabase dikes and east northeast striking Keweenawan

diabase dikes.

PREVIOUS WORK

The only previous work submitted for assessment credits has been by the present owner of the

property. An exploration program has been on-going since 1986 when the first claim of the block was

staked. The program consists of geological mapping, prospecting, trenching and rock sampling.

In 1989, The Ontario Geological Survey carried out a combined airborne electromagnetic and total

intensity magnetic survey over the north Swayze greenstone belt, which included most of Hillary

Township. The survey was flown along north-south lines spaced approximately every 200 metres. There

were no conductors detected on the Kelly Creek property and north south trending magnetic high

anomalies in the vicinity of the property likely represent diabase dikes.

SURVEY DESCRIPTIONS

A base line was cut through the middle of the survey area at an orientation of 55 Az. and grid lines

were compassed and paced every 100 metres and flagged every 20 metres.

The magnetic readings were taken every 20 metres with a Scintrex ENVI-MAG. This instrument is a

4

proton precession magnetometer which measures the earth's total magnetic field to an accuracy of 0.1

nT. The diurnal variations were not monitored with a base station magnetometer and no correction for

this variation was made. A total of 254 readings were taken along 4.92 kilometres of line.

The VLF-EM survey was run with a Scintrex ENVI. This instrument measures the horizontal field

strength in arbitrary units and the in-phase and quadrature components of the vertical electromagnetic

field as a percentage of the horizontal vector. The transmitter station used for both the grid lines and

base line was Cutler, Maine which operates at a frequency of 24.0 kHz. A total of 258 readings were

taken every 20 metres along 4.96 kilometres of line.

MAGNETIC RESULTS

The magnetic results are posted and contoured in Figure 2 at a scale of 1:5000; the contour interval

used on this map is 25 nT.

High magnetic anomalies can be aligned in a north south to north northwest direction and may

represent diabase dikes. Three of these dikes are located in the west half of the survey area and a

possible fourth diabase cuts through the south end of line O and 460 South on Line 200 West.

The only other anomaly of significance is a very local magnetic high which is centered at 20 North on

Line 200 West; the source of this anomaly is unknown.

EM RESULTS

The results of the VLF-EM survey are posted in Figure 3, the in-phase and quadrature components are

profiled in Figure 4 and the field strength is contoured in Figure 5, all at a scale of 1:5000.

Anomaly 'A' is a high amplitude anomaly strikes southwest through the southern half of the property

and then appears to swing northwest on the west side of the survey area. This anomaly, which is

1226341

1226340

Instrument : Scintrex EN

Type : Total Field Proton

Gridded By : Geosoft Bigrid

Cell Size ; 10 metres

niter : 1 Pass 9 Point Manning

Contour Interval : 25 nT

Scale : 1:5000

CLAIM POSTS

Figure 2 : Total magnetic field, Kelly Creek Property

6

represented by the high field strength and 'cross-overs' in the in-phase component, coincides with the

stream and likely has a surficial source.

Anomaly 'B' is a low amplitude response which strikes east-west from 150 North on Line 700 West to

100 North on Line 600 West.

Anomaly 'C' is also a low amplitude response which strikes east-west between 220 South on Line

500 West and 410 South on Line 200 West. Line 300 West should be extended to the south to verify that

the anomalies on lines 200 and 400 are the same one. Anomalies 'B' and 'C' could possibly represent

the same source, offset by a north-south striking diabase which runs from the north end of Line 300 West

to the south end of Line 600 West.

Oc/r B. __DATE ' ^D. LON^RY

TIMMINS GEOPHYSICS LTD

)

1226340

Quadrature In-phas*

Field Strength

X"

,^1226341 * Aa

fl- A**

*

*

LEGEND

Instrument : Scintrex ENVI

Tx Station : Cutler, Maine

Frequency : 24.0 kH

M, '*-

.V^

100 m

Scale : 1:5000

CLAIM POSTS

200 m

H Located

D Unlocated

Rgure 3 : VLF Survey, Kelly Creek Property

1226340

A

1226341 Tov

LEGEND

Instrument : Scintrex EW Tx Station : Cutler, Maine Frequency : 24.0 kH Profile Scale : 1cm = 20SE

In-phase— — — — Quadrature— O— Conductor Axis

100 m ZOO m

Scale : 1:5000

CLAIM POSTS

H Located D Unlocated

Figure 4 : VLF Survey, Kelly Creek Property

1226341

1226340

Instrument : Scintrex tMVI Tx Station : Cutler, Maine Frequency : 24-.O kH Contour Interval : 5

Sea e : 1:500012^18811

CLAIM POSTS

m Located D Unlocated

Figure 5 : VLF Field Strength , Kelly Creek Property

10

REFERENCES

Pyke, D.R., Ayres, L.D. and Innes, D.1973: Timmins-Kirkland Lake Sheet; Ontario Division of Mines, Geological Compilation Series,

Map 2205, scale 1" * 4 miles.

ONTARIO GEOLOGICAL SURVEY1990: Airborne Electromagnetic and Total Intensity Magnetic Survey, North Swayze-Montcalm

Area;Ontario Geological Survey, Map 81372. Scale 1:20,000.

133 FBI

Ontario

42A05SW2001 2.18943

Declaration of Assessment Work Performed on Mining Land

•nan IS(J) ma (((1), M.S O 1MA

1. Rec

HILLARY g g Q

- Please type or print in ink.

(i) (Attach a list rf necessary)

lutuctien (9(2) tna 64(3] or IK Mmfy Act. liHiment work IM correspond wiui 1M mining lane holder Qutitwns ibcut m*Dfthcm Oo*lopmcni ind M.nti. 3rd Fleer, 933 Kjmst/ UK* Road, Sudbury.

.cording a claim, use form 0240.

Ci*nt Numbtf

Teltphon* Nun**;

FMNumbti

Ck*ni Number

Telephone Number

f tt Number

2 c i ,

2. Type of work performed: Check K) and report on only ONE of the following groups for this declarationGeotechnical prospecting, surveys, assays and work under seeCoo 16 (regs)

WofU'Typt "

Physical drilling stripping, trenching and associated assays

Rehabilitation

fJ'*,//

Office UMCommodityTotal S Value of Work Claimed

c*.*** X 9 f r NTS Referenc*

Glow PnMrtnt Syium on Of Mlttit) T ———— S Mining Division

G - lo 7 yReild*W Geoloflit District r.- r*1 1 ^^

PlMM remember to: - obtain a work permit from tne Ministry or Natural Resources as required:- provide proper notice to lurface rights holders before starting work:- complete and attach a Statement of Costs, form 0212;- provide i map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report

3. , Penon or companltc who prepared th* technical report (Attach a list if necessary)

7 iOActJ'S

Numatr-5H79

Nin*

Mtfnu Fai Number

Norn

in^T

4. Ceitmcatkm by Recorded Holder or Agent \ Ul, f )M A A J 9". G-* is rtie#_____. do hereby certify that l have personal knowledge of the fack set for*in f ^ssthis Declaration of Assessment Work having caused the work to be performed or witnessed the same during or ifteVRT OfHQJ completion and, to the best of my knowledge, the annexed report is true._________ u——

rf •corded Oiw

rtt Address Ttiepnoni Numbr Fan Number

041 (W)

'••- 9Z9Z S5S S8ittllf. . - - .

OCT 09 -38 16:25

Me .is: 11 es-sa-ioo

OCT. 8 '38 l:02PM GOOD OLD BOOK EXCHANGE 250 7542163 P.3

S. Work to tw recorced and distributed. Work can only be a&sfcned to claims that are contiguous (adjoining) to the m.ning ! ire *herft worn was pe formed, at the time work was performed. A map showing the contiguous link mustaccomr-any Irjis form

7, V)c7s-. xv^cP//"^,M.nJ -g Claim Nurrbot. Or if v o V *as done en o* K*- eUgit * itT'jlind. show in thit

-nii* ile*; on '.hi diiipi map

t.

t

J

l

J

M

'T "

-'ju

1

•re :'82?

•'25-507

-.2M5W

/.'/fiS//;.22^3"o

' :;i243' /j

c\^

NuTnb*r of Claim Units. Fer slfur mining lins.li&t hactcr**.

16 ha

12

2

V

V

~" ~

Ov^ct

......---i-^j^-- 0 "

Colunn Toi ,l, **"rp

Vaiu* of vyof* performed on (his claim or othw nviing Itnd,

129,825

os a 892

^06c^o

^3(PO

^ ,nl

r*''"""

Valu* of work applied to Will claim.

N/A

JZ4,000

S 4,000

S&VO

Q

0

\'

i2X20 J60Q

VaiutfOf work '

mining c'llmi.

(24 COO

Dam Valyt if vvorX !0 bt' ; )i8lf : tu'Wat a 'vture OiM

S2,^!

Ci j (l

0

t— 0O

680

~^

S4.S9;

0400

&JLQ

.'^ *

i

^0 ! /2ZO

^ . 20 hereby certify that the above work :red ;ts a f ; eligiti e jnderli N*T1*)

VK" -ir

;ticn ^ fi'; of tt-* Assessment Work Regulation 6/96 for assignment to contiguous claims or for application ..; the thev*-o'kwas :;no.

cTF'"ecof(tec) HQfcter or Agent Autnoruefl in Wrillng Date

h'struot-on for cutting back credit* that ar* not approved.

;5 ne of the credits ; aimed in this declaration may be cut back. Please check (/'j in the boxes below to she* nw yoj wish to 3- jnize the deletion if credits:

3 1. Credits are to be cjt back from the Bank first, followed by option 2 or 3 or * as indicated.D 2 C -edts are to be cut back starting with the claims listed last, working backwards, orD 3. C 'edits are to be cut back equally over all claims listed in this declaration, orD 4. C redits are to be cut back as prioritized on the attached appendix or as follows (

.'te 'f yoj have not indicated how your credits are to be deleted, credits will be cut back from t^e Bank, first. fc-llc **d Dy cp 'On number 2 if necessary.

f jr Qfflco U*t OntjDeemed Approved Date Dal* Noiifi

lDate App Tola Va J* of C:*o:t.

! Approvec for R?cofOtr\g By Mtriicg recorder

iCElVEDq 'OCT :

GEOSCIENCF ASSESSMENT_____ OfHCE

Ontario Development Statement of Costs for Assessment Credit

(offlct

Work TypeUnit* of Work

Depending on (h# type of WOrK, ng( the fiuTisar of hours/dtyi worked, metres O* drilling, kilo-metr*i of grid i^e number o* samples, etc

Cost Per Unit of work

H Ac r/c

7O//C

Total Cost

A**OCl*t*d Costs (e.g. supplies, mobilization and demobilization).

.0000

Transportation Costs

Food and Lodging Costs

Total Value of Assessment Work

Calculation* of Filing Discounts:

1. Work filed within two years of performance is claimed at I000xo of the above Total Value of Assessment Work.2. If work is filed after two years and up lo five years after performance, it can only be claimed at SO'to of the Total

Value of Assessment Work. If this situation applies tc your claims, use the calculation below:TOTAL VALUE OF ASSESSMENT WORK x 0.50 = Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit- A recorded holder may be required to verify expenditures claimed in this sta'en-flnt request for verification and/or •*?':-*ction7clarific?t ; -'n If verification and/or correct!

1 1 't* y l Vi

Certification verifying costs:

. F/rt'^faQfa

musts yvilhin

jn

GOT c 9 raGEOSCIENCE ASSESSMENT

OFFICE ^^

s of a

-. do hereby certify, that the amounts shown are as accurate as may

reasonably bt determined and the costs were incurred while conducting assessment work on the lands Indicated on

C le A/' ["B- l am authorizedthe accompanying Declaration of Work form as ^ .___ vr * 3 (recc rd*d holdBf agen', nf J/je Ci

to make (his certification

.:c r *1h signing

081LTD.

Ministry ofNorthern Developmentand Mines

November 18, 1998

Elmond J. Gauthier ELCAJUN RESOURCES LTD. C/0 ELMOND GAUTHIER R.RA. #4, SITE-U2, C-24 NANAIMO, B.C. V9R-5K2

Minlstere du DeVeloppement du Nord et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5

Telephone: (888)415-9846 Fax: (877)670-1555

Dear Sir or Madam:

Subject: Transaction Number(s):

Submission Number: 2.18943

StatusW9860.00810 Deemed Approval

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at jeromel2@epo.gov.on.ea or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 13096

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.18943

Date Correspondence Sent: November 18,1998 Assessor: Lucille Jerome

Transaction First Claim Number NumberW9860.00810 1218811

Section:14 Geophysical MAG 14 Geophysical VLF

Township(s) l Area(s)HILLARY

StatusDeemed Approval

Approval Date

November 18, 1998

Correspondence to:Resident Geologist South Porcupine, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):Elmond J. Gauthier ELCAJUN RESOURCES LTD. NANAIMO, B.C.

Page: 1Correspondence ID: 13096

fr--TH4S-TWP. SUBJECT TO FOREST ACTIVITY - FURTHER- INFOfrMATlOM'-AVAJL^gtrE-ON

REFERENCESAreas withdrawn from staking under Section 43 of the Mining Act ( R.S.O. -

File Date Disposition164584 17/5/72 S. R. O.

169839 12 6 70 SR.Q PUBLIC ACCESS RES.

172556 24 6 70 S.R.O. PUBLIC ACCESS RES,

"2." T"HISIN l

fiue

5U&JCCT TO

NOTE

PROPOSED COTTAGING AREAS RECeiVEP DEC. 32/86

THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED. THOSE WISHING l O STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER, MINISTRY OF

42A05SW2001 2.18943 HILLARY

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TRAVf H St MONUMt. NTREGISTERED PLAN OF SUBDIVISION

DISPOSITION OF CROWN LANDS

TYPE OF DOCUM^fjT

PATiNT St-'Mi A.CE A MINING RIGHT'-:

sn H (-Act WIGHTS ON LVMINING HtGHTS ONLY ,.

L t ASf.SURF ACt Si MINING RIGHTS

SUPtACt RIGHTS ONLY

MININC, H1GHTSONLY, ,

LICE.NOF ("X OCCUPATION .

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V l k -s- ' - - l "v 1 l '

SCALfc 1 INCH - 40 CHAINS

4000 f.OOO 4000

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TOWNSHIP

HILLARY TWR

M N R ADMINISTRATIVE DISTRICT

TIMMINSMINING DIVISION

PORCUPINEl AND IllltS/ REGISTRY DIVISION

TIMISKAMINGMinistry of.

200 G-1075

i

OCT 89