rpt on the mcmillan gold mine

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Oft) ^-8 41ieiNW8)0ia 6 3,4928 M ONGOWIN 010 REPORT ON THE MCMILLAN GOLD MINE MONGOWIN TOWNSHIP SUDBURY MINING DISTRICT ONTARIO CANADA April 15, 1986 Ken Lapierre HBSc. KEN LAPIERRE EXPLORATION SERVICES

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Page 1: RPT ON THE MCMILLAN GOLD MINE

Oft) -841ieiNW8)0ia 63,4928 MONGOWIN 010

REPORT

ON THE

MCMILLAN GOLD MINEMONGOWIN TOWNSHIP

SUDBURY MINING DISTRICT

ONTARIO CANADA

April 15, 1986 Ken Lapierre HBSc.

KEN LAPIERRE EXPLORATION SERVICES

Page 2: RPT ON THE MCMILLAN GOLD MINE

ABLE OP CONTENTS 63.4928 MONGOWIN

Summary:

Introduction:

Property: Location and Description:figure l - general location map map l (file folder l)-claim map

Accessibility, Climate, Local Resources:

Geology: Regional Geologymap 2 (file folder 2)-regional map //2312

Local Geology

History: Previous HistoryTable 2-Chronological Events at the

McMillan Mine

Recent Exploration (Phase II)file folder 3-225' level

4-325' level5-425' level6-525' level7-625' level8-750' level9-875' level

Conclusions:

Recommendations:

Declaration:

References:

Appendix 1:

010C

PAGE

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...5

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. . .14

. . .15

. . .17

. . .18

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KEN LAPIERRE EXPLORATION SERVICES

Page 3: RPT ON THE MCMILLAN GOLD MINE

JMMARY

Loki Resources Incorporated holds a block of 36 contiguous unpatented mining claims located in Mongowin Township, Concession III, lots 7 to 12 inclusive, Sudbury Mining District, Ontario, Canada. The claim group is underlain by the Gowganda Formation and Lorrain Formation within the Huronian Supergroup. The Gowganda Formation hosts most gold deposits in the region.

Historical documents indicate that the McMillan Gold Mine Ltd. com menced shaft sinking in 1927 upon the successful completion of 5 surface holes drilled in 1926. All 7 levels opened up intersected gold bearing quartz veins. Diamond drilling below the 875' level intersected economic gold values over good mining widths. From August 13, 1934 to March 29, 1937, production totalled 10,590 ounces of gold from 60,139 tons of ore for an average recovered grade of 0.176 ounces/ton.

Recent observations from a program of underground sampling and geological mapping by Loki Resources Incorporated outlined 4 gold bearing vein systems of interest. First. the Lakeshore Pit Vein System ("H/C" Zone) returned an apparent grade of 0.245ozAon from stope panel samples located on the 750' level. Other levels recorded channel samples from trace up to 0.470 oz/ton over a 5.0' width and panel samples from trace up to Q.717ozAon. Secondly, the Fault/Shear Zone System ("D" Zone) returned an average grade of 0.328ozAon over a 3.2' width and an undetermined length, from the 525' and 625' levels. Thirdly, the "J" Zone Structure located on the 525' level, intersected a 50' section grading 0.137ozAon over a 4.1' width. A 25' section of this zone graded 0.203ozAon over a 3.8' width. Panel samples returned gold values from trace up to 1.44ozAon. Fourthly, Pit //2 Vein System returned no gold values of economic importance. Geological observations indicate that most gold bearing vein systems are associated with fault/shear zone environments and at pelite/quartzite contacts. The main "H/C" Zone appears to terminate against the northeast trending Fault/Shear zone:System. Its faulted extension may be the "J" Zone Structure.

Underground sampling and geological mapping outlined zones of economic and structural importance. The author strongly recommends the implementation of Phase III; a program of surface and underground diamond drilling for the purpose of determining vein continuity and to locate areas with undeveloped gold bearing zones.

KEN LAPIERRE EXPLORATION SERVICES

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INTRODUCTION

At the request of Loki Resources Incorporated this report

was prepared for the purpose of:

a) determining the results of Phase II; a program of under

ground sampling and geological mapping at the McMillan

Gold Mine.b) determining if Phase ..III; a program of surface and under

ground diamond drilling is justified.

The program was conducted by the author while in a super

visory position at the mine from January to March 1986.

Sources of information within this report were obtained

from Ontario Department of Mines and Ontario Geological Survey

reports, Ministry of Natural Resources files, presidential and

managerial shareholder reports, Northern Miner articles, con

sultants reportsand practical on-site experience.

KEN LAPIERRE EXPLORATION SERVICES

Page 5: RPT ON THE MCMILLAN GOLD MINE

PROPERTY: LOCATION AND DESCRIPTION

The property comprises 36 contiguous unpatented mining claims

located in Hongowin Township, Concession III, in all or parts of

lots 7 to 12 inclusive, Sudbury Mining District, Ontario, Canada

(figure l A map l- file folder).

Table 1: Claim list recording and status

CLAIM

S605720S605738S605739S605740S605755S605756S605812S605813S605814S647727S647728S647729S647730S682241S787629S787630S787631S787632S787633S791201S791202S791203S791204S791205S791206S791207S791208S791209S791214S791215S791216S791217S791218S791219S791220S791221

DATE RECORDED

May 6, 1983.......August 29, 1983...August 29, 1983...March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....February 4, 1983..February 4, 1983..February 4, 1983,.February4, 1983..February 15, 1983.May 7, 1984.......May 7, 1984.......May 7, 1984.......May 7, 1984.......May 7, 1984.......March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 2, 1984.....March 16, 1984....March 16, 1984....March 16, 1984....March 16, 1984....March 16, 1984....March 16, 1984....March 16, 1984....,March 16, 1984....,March 16, 1984....,

STATUS

..28 days due — May 6, 1988—

..52 days due — Aug 29, 1988-

..52 days due — Aug 29, 1988-

.. 8 days due —— Mar 2, 1988—

.. 8 days due--— Mar 2, 1988—

.. 8 days due — Mar 2, 1988—

.. 7 days due — Mar 2, 1988—

.. 7 days due — Mar 2, 1988—

.. 7 days due — Mar 2, 1988—

..28 days due — Feb 4, 1988—

..28 days due — Feb 4, 1988—

..28 days due — Feb 4, 1988—

..28 days due — Feb 4, 1988—

..28 days due — Feb 15, 1988-

..23 days due — May 7, 1988—

..23 days due — May 7, 1988—

..23 days due — May 7, 1988—

..23 days due — May 7, 1988—

..23 days due —— May 7, 1988—

..43 days due —— Mar 2, 1989—

..41 days due — Mar 2, 1989—

. . 2 days due — Mar 2, 1988—

. . 8 days due —— Mar 2, 1988—

. . 8 days due — Mar 2, 1988—

. . 8 days due — Mar 2, 1988—

..45 days due — Mar 2, 1989—

..43 days due — Mar 2, 1989—

. . 8 days due — Mar 16, 1988-

. . 8 days due —— Mar 16, 1988—

. . 8 days due — Mar 16, 1988-

. . 8 days due — Mar 16, 1988-

. . 8 days due — Mar 16, 1988-

. . 8 days due — Mar 16, 1988-

. . 8 days due — Mar 16, 1988—

. . 8 days due —— Mar 16, 1988—

. . 8 days due — Mar 16, 1988—

-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements-requirements

to lease to lease to lease for 4th year for 4th year for 4th year for 4th year for 4th year for 4th year to lease to lease to lease to lease to lease for 4th year for 4th year for 4th year for 4th year for 4th year to lease to lease for 4th year for 4th year for 4th year for 4th year to lease to lease for 4th year for 4th year for 4th year for 4th year for 4th year for 4th year for 4th year for 4th year for 4th year

Mineral rights of all claims were acquired by Loki Resources

Incorporated from Hemlar Resources Exploration Limited in 1985.

In March 1986, Loki completed an option agreement with Dassen Gold

Resources Limited of Calgary. Dassen has the right to earn 100&

KEN LAPIERRE EXPLORATION SERVICES

Page 6: RPT ON THE MCMILLAN GOLD MINE

.nterest in exchange for issuing 300,000 Dassen shares and for bringing the property to the feasibility stage by 1989. If the option is exercised, Loki and Hemlardoki's subsidiary) will both retain a lOSo net profits interest in the prperty.

KEN LAPIERRE EXPLORATION SERVICES

Page 7: RPT ON THE MCMILLAN GOLD MINE

96*

oGtroldtOtl Monitouwodgt

Timmini i a l

McMillan Mine Mongowin Twp.

figure 1: Location Hap

To accompany the report of:

LOKI RESOURCES INCORPORATED

Page 8: RPT ON THE MCMILLAN GOLD MINE

(CCESSIBILITY, CLIMATE. LOCAL RESOURCES

Access to Loki's property is west from Sudbury for 42 miles along Highway #17 then south on Highway #6 for 12.5miles(through Espanola) to the waste disposal site turnoff located on the west side of the highway. A bushroad then leads north for 1,000 feet then proceeds 2.5 miles west to the center of the claim group, House Lake and the McMillan minesite area.

Rail transportation is located approximately 2 miles due east from the mine shaft. Climatic conditions are typical for this part of the province. Temperature variation range from -30 0 Celsius in winter to +30 0 Celsius in summer. Availability of electrical power is located 2.5 miles due east from the shaft to Highway #6. Water resource is available from House Lake located within the claim group and immediately south of the McMillan shaft. Mining supplies and manpower are located 10 miles north in Espanola and 57 miles northeast in Sudbury.

KEN LAPIERRE EXPLORATION SERVICES

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:OLOGY

A) ? e 2i2!2 a l Geology:

The geology of the Whitefish Falls and Espanola area consist predominately of Precambrian(Proterozoic) metasedimentary rocks that were later covered partially by unconsolidated Cenozoic deposits(map 2-file folder). The Precambrian rocks represent a 29,000 foot thick series of metasediments known as the Huronian Supergroup. This series of rocks are divided into 4 groups based on their cyclic evolution. From oldest to youngest the 4 groups are; Elliot Lake Group, Hough Lake Group, Quirke Lake Group and Cobalt Group. Each group generally represents a cyclic repitition of conglomerates, argillite(pelite) and sandstone(quartzite).

The Huronian Supergroup metasedimentary units were then intruded by sill-like bodies of Nipissing diabase, amphibolite dikes, ultamafic to granitic plutons then finally post tectonic diabase intrusions.

Structurally, the area lies within the Penokean fold belt of the Southern Province within the Canadian Shield. At least 3 series of deformational-metamorphic events altered the rocks in the region; 1) major east-west trending folds, 2) moderate east- west to northeast trending folds, 3) minor northwest to northeast trending folds.

Stratigraphic displacement of rock types range from tens of feet up to thousands of feet. Location of fault zones generally represent boundaries between structural domains. Faulting took place before, during and after the deformational-metamorphic events. At least 3 fault systems occur in the region; l)major east-west trending faults-possibly related to major east-west trending folds, 2) northeast trending faults, 3) northwest trending faults.

Regionally, the Gowganda Formation hosts the environment for the accumulation of gold bearing fluids. Research indicates that gold is associated with structurally and stratigraphically controlled environments.

KEN LAPIERRE EXPLORATION SERVICES

Page 10: RPT ON THE MCMILLAN GOLD MINE

l) Local Geology:

The geology of the claim group consist predominantly of Gowganda and Lorrain Formation metasediments of the Cobalt Group within the Huronian Supergroup. The north and central claims are underlain by rocks of the Gowganda Formation. These rocks are steeply dipping east-west trending conglomerates and alternating bands of pelite and quartzite. The southern claims are underlain by rocks of the Lorrain Formation. These rocks are steeply dipping east-west trending impure quartzites that form the ridges south of House Lake.

Several diabase and amphibolite intrusions cross-cut all rocks of the claim group. Structurally, the metasediments form the limb connecting the LaCloche syncline to the south with the Fox Lake anticline to the north.

Gold ore at the McMillan property has generally been accepted as originating from a major anticlinal fold, trending northeast and plunging at 65 0 . This mine fold is located east of the shaft under House Lake. The gold bearing quartz veins are apparently associated within and at the contacts of folded quartzite and pelite units in close proximity to diabase sills and dikes. Gold occurs in its native state and intimately associated with arseno pyrite, pyrite, pyrrhotite and chalcopyrite.

KEN LAPIERRE EXPLORATION SERVICES

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HISTORY

A) Previous History:Table 2 lists the geological, economical and historical

highlights of the McMillan Mine from it's discovery up to the presently completed Phase II underground sampling and geological

mapping program by Loki Resources Incorporated. The information below occurred in Ontario Department of Mines data, Northern Miner articles and presential and managerial shareholder reports.

g^ Chronological Events at the McMillan Mine

1910--Mr. A. Heard sunk a 12' test pit on veins known later as the Lakeshore Pit Vein System

1920-26--Gold Nugget Mining Co. prospected property1926--5 diamond drill holes intersected gold bearing veins

-McMillan Gold Mines Ltd. incorporated Dec. 31, 19261927--Vertical shaft sunk to 550'

-2 levels opened: 325' and 525'1928--Veins up to 30' wide on both levels

-J Orebody discovered on 525'level. Unusual dis covery 500'east of present main gold bearing veins-Large specimen of gold ore sent to Dr . E . S .Moore : director of Museum of Geology, Royal Ontario Museum

1929--Mr.D.Derry professor of Geology at U. of T. sampled McMillan material: 1.72 oz/ton-abundant arsenopyrite

1.12 oz/ton-abundant pyrrhotite 1.32 oz/ton-abundant chalcopyrite

-Visible gold associated with veins on both levels-Vbrld known geologist Mr .P . E .Hopkins property examination of surface and underground:a) Surface: Pit #2 Vein-0 . 85oz7ton over 8.8'

-0.35ozAon over 3.4' average--0 . 72oz^on over 6.0'

Lakeshore Pit Vein -commercial gold values-80'strike length-abundant Visible Gold

b) Underground:i) 325'level: 4 lenses-total length--245'

-average width-2.9'-average assay-0.35ozAon

ii) 525'level: 2 lenses-total length--213'-average width-3.7'-average assay-0 . 3802/ton

:J Orebody--encouraging assays

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"able #2(continued)

-Geologist Or. Banks examination of surface and underground levelsa) Sur face:

Lakeshore Pit Vein-total length--65'-average width-4.0 1 .-average assay-0.929ozXton

b) Underground:i) 325' level: 6 lenses-total length--314'

-average width-3.4'-average assay-0.45ozXton

ii) 425' level: l lens --total length--28'-average width-4.3 1-average assay-0.52ozXton

iii) 525' level: 2 lenses-total length--267'-average width-3.6 1-average assay-0,51ozXton

:J Orebody-total length--180'-average width-3.7 1-average assay-0.22ozXton

iv) 107 samples representing a uniform bulk samplesent to results

3 independentfollowed:GOLD —— 0.SILVER--0.COPPER--0.ARSENIC-0.SULPHUR-3.operations

labratories. Average

50ouncesXton OBouncesXton 07S 655S 513 suspended due to lack of funds-November 1929,

1931--Shaft flooded-Commencement of diamond drilling program

1932--diamond drilling program continued1933--Commencement of dewatering program: June 15, 1933

-Shaft sinking from 550' to 650'(level on 625')-New drag theory by consultant engineer J. G. McGregor-McGregor's composite average of 325' and 525' level:

-total length--272'-average width-4.0 1-average assay-0.49ozXton

estimated from 525' level to connect between levels: 152,800 tons to depth--enhanced length and

width of gold bearing quartz veins at depth-at 525" level intersected 24' wide quartz vein carrying commercial values

-McGregor's total tons surface if all lenses

-swelling of drag fold

1934--625' level: 100' length 30' 40' 20 t

f 0.424ozXton length of 0.210ozXton length of 0.550ozXton wide gold bearing quartz vein system, undeterminable length, average assay-o.35ozXton

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'able //2(continued)

-August 13, 1934, commencement of 125 ton/day mill-stoping on 225',325', 625' levels-established 750' and 875' station-225' level: l lens -total length--300'

-average width-3.9'-average assay-O.386oz7ton

-1934 production: 2 different results recorded: 1) O.D.M. report-12,313 tons of ore

-1,959.39 ounces of gold-average grade-0.16Q.oz/ton

2)Manager's report—12,311.86 tons of ore-3,154.36 ounces of gold-average grade-0,256ozXton

-major problem with coarse gold locked up in circut could represent discrepancy between difference in total ounces recovered

1935--No significant attempt made to define down dip extension of orebodies on upper levels

-New jig system installed to improve recovery-estimated coarse gold content--5Q5o

-Minor stoping on J Orebody--discontinued due to low values---0.22ozXton

-750' level: quartz vein system-averages 15' wide-low values--0.1 to 0.2ozXton

-875' level: quartz vein system-averages 15' wide-low values--0.1 to 0.2ozXton

-Diamond drilling intersected:i)at 725'-17' wide vein-trace up to Q.55ozXton over 2.5

ii)at 800'-12 f wide vein-low values iii)at 825'-6' wide vein-low values iv)at 975'-values ranged from 0.1 to 0.2ozXton

-50' core length with 0.31ozXton over 2.7' v) J Orebody area-intersected 2 areas 500' apart

with commercial values-1935 production:approximately 40,200 tons of ore

:7,776 ounces of gold saverage grade-0.19ozXton

-December 1935, operations shut down due to lack of ore reserves, lack of funds

1936--Underground kept dewatered-Commencement of diamond drilling-November 4, 1936: Mining resumed on 525',750',875'levels-1936 production: 3,656 tons of ore

1937--Minor stoping on lower levels-Major problem with recovery due to coarse gold-725' level-solid 3' wide arsenopyrite vein with a

length of 35'--abundant Visible Gold-Diamond drilling-ddh. #8-6: 0.74ozXton over 40'

-at 1,000': intersected quartz veinsystem with commercial values in the lozXton range

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10

Ible #2 (continued)

-750'level: total length--100' average width-4.5' average assay-0.31ozXton

-875'level: total length--100' average width-4.0' average assay-0.14oz7ton

-1937 production: 7,638 tons of oreaverage assay-0.10 oz/ton

-March 29, 1937, operation permanently closed down due to: lack of funds

poor recovery lack of ore reserves

-sold plant to Massey Gold Mines Limited1954--0ntario Department of Mines reported McMillan Mine

produced 10,590.628 ounces of gold from 60,139 tons of material for an average recovered grade of 0.176 oz/ton (companies yearly records indicate approximately 3,000 extra tons of ore were produced)

1959--McMillan Gold Mines Limited sold all its assets to Sumac Exploration Limited for 200,000 Sumac shares

1962--Dayjon's surface diamond drilling intersectedquartz veins east of main workings between 325' and 525'levels---possible up dip continuation of J Orebody

-Mine never dewatered as previously reported1979--McMillan gold Mines Limited--0ntario charter cancelled1985--Loki Resources Incorporated dewatered to 625'level

-preliminary sampling indicated areas of economic interest associated with old stopes(Phase 1)

-Author strongly recommended Phase II; a program of winze dewatering and underground sampling and geological mapping to determine the presence of gold mineralization and its relationship with the stratigraphic, lithologic, metamorphic and structural history.

B) Recent Exploration (Phase II):

In January 1986, Loki Resources Incorporated initiated de watering to the 875'level and a program of underground sampling and geological mapping of all 7 levels (file folders 3-9 inclusive).

Geological and analytical observations outlined 4 main quartz vein systems of interest; 1) Pit # 2 Vein System, 2) Lakeshore Pit Vein System ("H/C" Zone), 3) Fault/Shear Zone System ("D" Zone) 'and 4) "J" Zone Structure (appendix 1).

1) Pit.'^Vein System:

Pit #2 Vein System occurs on the 225', 325', 425', 525' and

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li

^R5 ' levels. This Vein System strikes approximately 100 0 and dips steeply north. It is best exposed on the 325' level where it has a maxium width of 28' and a length of 400'. The Vein System is associated with up to 1055 sulphides and varying amounts of chlorite and tourmaline alteration products. The hangingwall and footwall contacts are associated with a grey green to white massive quartzite. On the 325' level, Pit #2 Vein System apparently terminates against the Lakeshore Pit Vein System ("H/C" Zone) ap proximately 160' east of the shaft.

Gold assays up to O.OSoz/ton over 2' and grab samples up to 0.076ozAon were recorded on the 425' level.

The Lakeshore Pit Vein System ("H/C" Zone) occurs on all underground levels and represents Orebodies A, B, C, F and H. Approximately BOSS of the mine's production came from this Vein System. The System strikes from OSO 0 to 090 O and dips from 45 0North to 80 0 South. It averages 10' wide occassionally swelling in excess of 35' and has a length of at least 250'. The Vein System is associated with up to 208 sulphides and arsenopyrite and varying amounts of chlorite, tourmaline and ankerite alteration products. The hangingwall contact to the Vein System is charact erized by a sheared-lineated, chloritized pelite. The footwall contact is characterized by a grey-green massive quartzite. The System appears to "bend" southwest to form "H" Zone-south arm on the 525' level. The hangingwall and footwall contacts of the south arm is characterized by a grey-green to white, massive quartzite. Historical documents indicate that the nose of the anticlinal fold is located where the main System apparently "bends to form the "H" Zone-south arm.

Stope inaccessibility limited the amount of samples taken for a proper grade determination. On the 750' level, where stope accessibility was successful, panel samples(compilation of chip samples over a specific area) from trace to 0.614ozXton were recorded, returning an overall apparent grade of 0.245ozXton over

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12

an undetermined width. Areas between and on strike from old stopes recorded erratic gold values. For example, on the 325' level, channel samples recorded values from trace up to 0.470ozXton over 5.0' and panel samples up to 0.717ozXton. Also, on the 875' level, channel samples recorded values from trace up to 0.199ozXton over 4.5'and panel samples up to O.AOoz/ton.

The Fault/Shear Zone System ("D" Zone) occurs on the 325', 525' and 625' levels and is associated with "D" Orebody. The System strikes from 020 0 to 030 0 and dips from 85 0 Southeast to 75 0 North- west. "D" Zone is approximately 5-8' wide and has a undetermined length. The System is located between a sheared, crenulated, chlor- itized pelite to the east from a grey-green to white, massive quartzite to the west. The northeast trend of the Fault/Shear Zone System strikes in close proximity to the apparent nose of the fold. Observations indicate that the drag folded appearance of the metasediments in this area is the result of the northeast trending Fault/Shear Zone System producing a right handed offset of the metasediments and possibly the "H/C" Zone. The "H" Zone-south arm may have formed from secondary fractures parallel to the Fault/ Shear Zone System.

Channel samples recorded on the 525' and 625'levels, appar ently representing the on strike and down dip continuation of "D" Orebody, returned an average grade of 0.328ozXton over 3.2'. Other values recorded from this Zone were a panel sample of 0.336 oz/ton, a muck sample of O.ZOOoz/ton and a floor sludge sample of 0.123ozXton.

The "J" Zone Structure, located on the 525' level, contains the "J" Orebody. This Structure has an undetermined width and length. It is genetically related to a major, crenulated, 6' to 8' wide fault zone. This fault strikes from 070 0 to OSO 0 and dips from 75 0 North to vertical. The hangingwall contact to the fault

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zone is characterized by a sheared, chloritized pelite. The footwall contact is characterized by a sheared, chloritized quartzite. The west trend of the "J" Zone Structure would appear to terminate against the northeast trending Fault/Shear Zone System. A 200'right handed displacement of the "J" Zone - Structure by the Fault/Shear Zone System would coincide with the on strike continuation of the "H/C" Zone. Observations indicate that the "J" Zone Structure may be the on strike continuation of the "H/C" Zone.

South of the "J" Orebody, the footwall metasediments inter sected a 50' section grading Q.137ozXton over a 4.1' width. A 25' length of this section graded 0.203ozXton over a 3.8' width. Footwall panel samples recorded gold values from trace up to 1.44ozXton. Hangingwall metasediments recorded channel samples from trace up to 0.095ozXton over a 5.0' width and panel samples from trace up to 0.920ozXton.

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CONCLUSIONS

1) Underground sampling confirmed that economic gold mineral ization exists within the Lakeshore Pit Vein System ("H/C" Zone), the Fault/Shear Zone System ("D" Zone), and the "J" Zone Structure. Sampling of Pit #2 Vein System intersected no gold values of economic interest.

2) Geological mapping confirmed that most gold bearing vein systems are associated with fault/shear zone environments and at pelite/quartzite contacts. No major anticlinal fold was observed. Observations indicate that the "J" Zone Structure may be the faulted extension of the "H/C" Zone.

3) Based on the results and observations of Phase II, the

author strongly recommends the implementation of Phase III; a multi-phase surface and underground diamond drilling program. This program will determine vein continuity between, along strike and below known gold bearing Orebodies for the purpose of defining undeveloped gold bearing zones.

KEN LAPIERRE EXPLORATION SERVICES

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?EECOMMENDATIONSThe success of Phase II outlined several areas where diamond

drilling is warranted. These areas are: 1) Lakeshore Pit Vein System ("H/C" Zone)

-drilling levels: 325, 425, 525, 625 and 875-total holes-total footage-conclusion

2)

37

7,399

to locate and define poten tial undeveloped areas of the "H/C" Orebody from the 325' level to a depth of 1,000'.

Fault/Shear Zone System ("D" Zone)-drilling levels: 525 and 625-total holes :-total footage :-conclusion

3) Zone Structurea)-drilling levels

-total holes-total footage-conclusion

b)-drill location-total holes-total footage-conclusion

163,300to define down dip exten sion of the "D" Orebody from the 525'level to a depth of 700'.

525142,101to define the on strikeand down dip continuationof the "J" Zone Structurefrom.the 525' level to adepth of 625''.

surface63,000to define the on strike andup dip continuation of the"J" Zone Structure from surfaceto the 525' level.

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COMMENDATIONS (continued)

Time Frame: 7 months

Estimated Costs:

A) Oewatering and stand-by: . . . S410 , 000.00-labour, equipment, security etc.

B) Fuel: ... 84,000.00-approximately 200 gallons/day

C) Diamond drilling: ... 395,000.00-15,800' at S257foot-assays, supplies, moves,set-ups, etc.

D) Supervision/Logging/Compilation: , ... 112,000.00-2 geologist-l core technician

E) Road upgrading to site: ... 20,000.00 F) Underground survey: 20.000.00

sub-total Si,041,000.00

G) Contingencies:(15SO ... 156.150.00-transportation, accomodations, site office, lumber, dynamite, supplies

TOTAL ESTIMATED COST.....Si,197.150.00

A total of 75 surface and underground diamond drill holes totalling 15,800' would be required to complete the proposed Phase III program. The successful completion of this program

will enable Dassen Gold Resources Limited to determine preliminary ore reserves and bring the property to an underground bulk sampling and feasibility stage.

April 15, 1986 Respectfully submitted,

Ken Lapierre HBSc. aF.G.A.C. Consultant Geologist

KEN LAPIERRE EXPLORATION SERVICES

Page 21: RPT ON THE MCMILLAN GOLD MINE

17

DECLARATION

I, Kenneth J. Lapierre, of the city of Timmins, Province of Ontario, Canada, do state:

1. that I am a practising Consulting Geologist with an office at 276b Hemlock Street, Timmins, Ontario,

2. that I am a Graduate with the degree of Honours Bachelorof Science in Geology from the University of Western Ontario, London, Ontario, Canada,

3. that I have practised my profession as Geologist since my graduation,

4. that I am an Assiociate Fellow of the Geological Association of Canada and a Director of the Prospectors and Developers Association of Canada, Timmins Branch,

5. that I am familiar with the material in this report, having examined the original material myself and being associated with the present exploration program on the property acting as a Consultant for the past 7 months,

6. that I do not have, nor do I expect to receive any director indirect financial interest or securities in the property described in this report.

Dated this 15th day of April, 19B6.

Kenneth J. Lapierre HBSc. aF.G.A.C. Consultant Geologist

KEN LAPIERRE EXPLORATION SERVICES

Page 22: RPT ON THE MCMILLAN GOLD MINE

18

REFERENCES

Assessment Files, Ministry of Natural Resources, Sudbury, Ontario

Banks, J.H. (1929)Summarized Report on the Property of the McMillan Gold Mines, Limited, on House Lake near West River, Township of Mongowin, Sudbury Mining District, Ontario, Canada. 19p.

Card, K.D.1976: Geology of the Espanola-Whitefish Falls Area, District

of Sudbury ONtario; Ontario Geological Survey, Report 131, 70p. Accompanied by Maps 2311, 2312, scale 1:31680 or l inch to 1/2 mile, and 2 charts.

Constable, Dave (1985)Geological Report on the McMillan Mine Property Mongowin Township Sudbury Mining District Ontario. 16p.

Hopkin, P.E. (1929)Report on the McMillan Gold Mines, Ltd. Mongowin Township District of Sudbury Ontario. 9p.

Lapierre, K.J. (1985)Geological and Historical Report on the McMillan Gold Mine Claim Group Mongowin Township Sudbury Mining District Ontario Canada. 23p.

Moore, E.S. (1929)Ore Deposits near the North Shore of Lake Huron. Ontario Department of Mines, Annual Report, Vol. 38, Pt.7, p. 39-46.

Ontario Department of Mines. Annual Reports from 1926 to 1938 inclusive. McMillan Gold Mines Limited.

Northern Miner Articles. McMillan Gold Mines Limited. Articles from 1926 to 1954.

Winter, L.D.S. (1984)Geological Report on the McMillan Gold Property Mongowin Township District of Sudbury Ontario-for Sanfred Resources Ltd. 23p.

KEN LAPIERRE EXPLORATION SERVICES

Page 23: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l

BELL- WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187, HAILEYBURY. ONTARIO TEL: 672-3IO7

Qkritfirat*NO. 29154

SAMPLE (S) OF: Rock (4)

SAMPLE (S) FROM: Mr. Ken LapierreLoki Resources

DATE: November 7, 1985

RECEIVED: November, 1985

Sample No.

G16001

2

3

4

Oz. Gold

0.066

0.717*

0.146*

0.830*

* Checked

IN ACCORDANCE WITH LONO.ESTABLISHED MOUTH AMERICAN CUSTOM. UNLESS IT IS SPECIFICALLY STATED OTHERWISE COLD AND SILVCfl VALUES REPORTED ON THE!! SHEETS HAVE NOT BEEN ADJUSTED TO COMPEN- TATC FOR LOS^C^ AND CAIKS INHERENT IN THE FIRC

ASSAY PMOCCS5.

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 24: RPT ON THE MCMILLAN GOLD MINE

NO. 30817

SAMPLE (S) OF:

APPENDIX l 20

BELL-WniTE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-3107

Qfcrltfirat*

Rock(6)

DATE: November 13, 1985

RECEIVED: November, 1985

SAMPLE (S) FROM: Mr. K. Lapierre, Loki Resources

PROJECT: McMillan Mine

Sample No.

G16005

6

7

8

9

G16010

Oz. Gold

0.076

' 0.026

0.308**

0.194**

0.014

0.002*

* Estimated.

** Checked.

IN ACCOHOANCC WITH LONO .CtTABLI IHtO MOUTH AMtHICAN CUSTOM, UNlCtf IT 11 fPtCIFICAULr (TATCO OTHtftWIfC OOLO AND SILVCft VALUE* KC^OKTCO ON THttC IHCCTt HAVf NOT BCCN ADJUtTCD TO COHPCN- *ATf f On LOffCf AND CAIN* INHtRCNT IN THC flit

ACIAV PROCCSS.

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 25: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l21

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187, HAILEYBURY. ONTARIO TEL: 672-31O7

NO. 34475

SAMPLE(S) OF: Rock(22)

DATE: November 26, 1985

RECEIVED: November, 1985

SAMPLE (S) FROM: Mr. K. Lapierre, Loki Resources

PROJECT: McMillan Mine

Sample No. Oz. Gold

1601123456789

16020 l

0.0540.0500.1020.002*1.440**

0.7600.4520.7940.0140.2420.166

Sample No.

1602234567

1602916030

123

Oz. Gold

0.904TraceTrace0.9200.0240.3340.0100.2140.4460.091**0.070

* Estimated. ** Checked.

IN ACC0KOANCI WITH LONO.ttTA*LISHCO NOftTM AMCftlCAN CUSTOM. UNLESS IT IS S^CCIf ICALtY STATCD OTHCftWKC GOLD AND SILVCR VALUtS BC'ORTIO ON THC*t fHCCT* HAVf NOT (CCN ADJUSTED TO COMPCN- '

ATC 'OH totfft A ND GAINS INHCRI.NT IN THC n il

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 26: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l22

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-3107

Qkrttfirat*NO. 36177

SAMPLE (S) OF: Rock(5)

DATE: December 3-, 1985

RECEIVED: November 1985

SAMPLE(S) FROM: Mr. Ken Lapierre, Lokt Resources

PROJECT: McMillan Mine

Sample No.

16028

16034

16035A

16035B

16035C

Oz. Gold

0.206*

0.132*

0.130

0.110*

0.128

* Checked,

IN ACCOROANCC WITH LONO.tf TABLISHCD MONTH AMERICA* CUSTOM. UNLCtt If is iPCC ir ICALtV STATCO OTHCftWlfC COLD AND SllVCft VALUtS RCPORTCD ON

tHIle (HCCTf HAVt NOT aCCN AOJUSTCD TO COMPfN.

SAIC ION LOfcfeCS AND CAINS INMfRlNT IN THL FIMC

BELL-WHITE ANALYTiCAL LABORATORIES LTD.

Page 27: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l 23

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HA1LEYBURY. ONTARIO TEL: 672-31O7

GJ?rttfiratp nf AnalystsNO. B717-85

SAMPLECS) OF: S ludge(l)

SAMPLE (S) FROM: Mr. K. Lapierre, Loki Resources

DATE: December 12, 1985

RECEIVED: December, 1985

Sample No.

16035

Silver ppm

1.2

1*4 ACCOHOANCC WITH LONG.Cf TAftLtSHCO NORTH AMERICAN CUSTOM. UNLCSS IT IS SPECIFICALLY STATED OTMOWKC COLD AND flUVCft VALUCS RCCOKTCO ON '-CIC SMCCT1 HAVC NOT *fIN AOJOSTCO TO COM^tN.

bAtC FOR LOSSCS AND CAINS l'j~lflCNT IN THE FIRC ASIAV PHOCtU

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 28: RPT ON THE MCMILLAN GOLD MINE

n \ X l A pp ENDIX l 24

DELL-WHITE ANALYTICAL LABORATORIES LTDP.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-3107

Qkrttfirat? of AnalysisNO. 0341

SAMPLE (S) OF: Rock(44!

DATE: February 28, 1986

RECEIVED: February, 1986

SAMPLE(S) FROM: Mr. Ken Lapierre, Loki Resources.

RE: McMtllan Mine

Sample No. Oz. Gold Sample No. Oz. Gold

G1700123456789

G1731456789

G1732789

G17330123

TraceTraceTraceTrace0.002*TraceTrace0.008Trace0.0040.0060.002*0.028TraceTraceTraceTraceTrace0.0060.0080.0120.006

G1733456789

G17340l

G912523456789

G9126012

- 345

0.0100.0140.016Trace0.0120.002*Trace0.002*0.0200.0100.0400.012Trace0.183**0.0100.0740.199**0.010Trace0.418**0.184**0.614**

* Estimated ** Checked.

IN ACCORDANCE WITH LONG-ESTABLISHED NORTH AMERICAN CUSTOM. UNLESS IT IS SPECIFICALLY STATED OTHERWISE COLD AND SILVER VALUES REPORTED ON THESE SHEETS HAVE NOT BEEN ADJUSTED TO COMPEN SATE FOR (JOSSES AND CAINS INHERENT IN THE FIRE

ASSAY PROCESS.

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 29: RPT ON THE MCMILLAN GOLD MINE

APPENDIXHrrLNUlx i 25

BELL-WHITE ANALYTICAL LABORATORIES LTDP.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-31O7

Qkrttfirat? of AttalgataNO. 0369

SAMPLE (S) OF: Rock(lOS)

SAMPLE (S) FROM: Mr. K. Lapierre, Lok-i

Samp. No.

17010123456789A9B

17020 12345678

1703013A3B456789

170401234

Oz. Gold

Trace0.002*0.002*0.004TraceTrace0.002*Trace0.018TraceTraceTrace TraceTraceTraceTraceTrace0.002*TraceTraceTraceTraceTraceTrace0.0080.010TraceTraceTrace0.002*TraceTraceTraceTrace0.002*

Samp. No.

1704589

1705012345678 9

170601234567' 8

917070

12345678

1708123

DATE: March 7, 1986

RECEIVED: March 1986

Resources

Oz. Gold

0.470**0.0140.002*Trace0.002* .TraceTraceTraceTraceTrace0.002*0.020 Trace0.182**0.0040.002*0.0120.008Trace0.0080.382**0.069Trace0.034Trace0.032TraceTraceTrace0.0160.142**0.126**0.020Trace0.076

Samp. No.

1708456789

1709012345 6789

17100123456-* t

89

1701012345678

Oz. Gold

0.0520.0320.0200.0720.0400.0140.0040.0160.014TraceTraceTrace 0.002*TraceTrace0.163**0.0300.0100.0180.0220.0100.0280.0040.002*0.004TraceTrace0.002*0.002*0.002*TraceTraceTraceTrace0.004

* Estimated. ** Checked.

IN ACCORDANCE WITH LONO. ESTABLISHED NORTH AMCftlCAN CUSTOM, UNLESS IT IS SPECIFICALLY STATCO OTHERWISE COLD AND SILVER VALUE* RF.PORTEO ON THCSC SHfCTC HA'C NOT CCCN ADJUSTED TO COMPEN SATE rON LOfcSCS AND CAINS INHEKCNT IN THC FIRC

ASSAY PROCESS.

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 30: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l 26

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-3107

flfNO. 0409 Page l of 2 DATE: March 13, 1986

V .

SAMPLE(S) OF: Rock(185) RECEIVED: March, 1986

SAMPLE(S) FROM: Mr. K. Lapierre, Lokl Resources.

Sanp.No.

17123456

i- 789

17130123

t S678

fc 917140

l: . 12

r 345

? 6789

' 1715012

i; 345

Oz. Gold

0.080TraceTraceTraceTraceTrace0.018Trace0.0180.0160.010Trace 0.002*TraceTrace0.020TraceTraceTraceTraceTraceTraceTraceTrace0.002*TraceTrace0.044Trace0.0080.0040.177**0.062

Sanp.No.

17156789

17160123

17165678 9

17170123456789

17180123456

171889

17190

Oz. Gold,

0.0560.0740.0760.118**0.0080.0460.0406'. 0100.0740.0660.010Trace Trace0.002*TraceTraceTrace0.008TraceTraceTraceTrace0.002*Trace0.461**0.006.TraceTraceTraceTraceTraceTraceTrace

Sanp.No.

1719123456789

1720012 3456789

17210123456789-220123

Oz. Gold'

TraceTrace0.008TraceTraceTraceTraceTrace0.014TraceTraceTrace Trace0.0950.0100.0280.004TraceTraceTrace0.006TraceTraceTraceTrace0.0520.0140.0040.0120.0700.004TraceTrace

* Estimated. ** Checked.

IN ACCORDING! WITH LONO-tSTABLISHtD NORTH AMERICAN CUSTOM UNLCSS IT IS SPCCH'ICALUY STATED OTMCRWISC COLD AND tILVC* VALUES Rf ORTCO ON THltC SHCCTS HAVE NOT (CCN ADJUSTED TC COMCEM. f*TC f On LOSSES AND CAINS INHCRCNT IN TMC FCHE

ASSAY PROCESS.

(Cont'd.)

BELL-WHITE ANALYTICAL- LABORATORIES LTD.

fm.

Page 31: RPT ON THE MCMILLAN GOLD MINE

nil L KU l A

NO. 0409

SAMPLE (S) OF:

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-3107

Qkrttfiratr nf AnalgatePage 2 of 2

Rock(185)

DATE: March 13, 1986

RECEIVED: March, 1986

SAMPLE (S) FROM: Mr. K. Lapierre, Loki Resources.

Samp.No. Oz. Gold Sanp.No. Oz. Gold Samp.No. Oz. Gold

1722456789

17230123456789

17240123456789

1725012

TraceTrace'0.0660.244**Trace0.429**0.0420.481**0.166**0.336**0.179**Trace0.004TraceTraceTrace0.143**0.0880.0260.0800.253**0.0440.004TraceTrac60.016Trace0.026Trace

1725345678

17260l

172634567

1726917270

123456789

1728017282

345

0.0060.022TraceTrace0.0060.002*TraceTraceTrace0.002*0.008Trace0.118**0.0100.0360.0500.0120.0040.0660.0060.178**0.0040.0140.0680.207**0.135**0.002*TraceTrace

17286789

17290123466789

17300123

173056789

17J10123

91251

0.046 0.018 0.022 Trace Trace 0.046 Trace 0.018 0.020 0.004 Trace 0.026 Trace Trace Trace 0.004 Trace 0.002* Trace Trace* Trace Trace. 0.002*

1 ''Trace. 0.282**0.259** 0.127*-

0.008

* Estimated. ** Checked.

IN ACCORDANCE WITH LONO.TSTAtUSHEO NORTH AMERICAN CUSTOM. UNtESS IT It tPEC l TIC*L L r STATED OTHERWISE OOLD ANO SILVER VALUES REPORTED ON TMttC SHEETS MAVC NOT ICCN ADJUSTED TO C9MPCN. fATC r OK LOtfCf ANO CAINS INHERENT IN THi FIRE

ASSAY PROCESS,

BELL-WHITE ANALYTICAL LABORATORIES LTD.

Page 32: RPT ON THE MCMILLAN GOLD MINE

APPENDIX l 28

BELL-WHITE ANALYTICAL LABORATORIES LTD.P.O. BOX 187. HAILEYBURY. ONTARIO TEL: 672-31O7

Qfrrttfkat? nf AtralgaiaNO, 0420

SAMPLE (S) OF: Rock(4)

DATE: March 18,- 1986

RECEIVED: March, 1986

l SAMPLE (S) FROM: Mr. K. Lapierre, Loki Resources

Sample No.

17119

17120

17121

17122

Oz. Gold

Trace

Trace

0.010

0.002*

* Estimated.

IN ACCORDANCE WITH LONO.ESTABLISHED NOHTH AMEKICAN CUSTOM. UNLESS IT IS SPECIFICALLY STATED OTHERWISE OOID AND SILVER VALUES REPORTED ON

TMCSC SHEETS HAVE NOT BCCN ADJUtTf.O TO COMPCS. j f ATC POK LOSSES AND CAINS INHERENT IN THE FIRE

BELL-WHITE A NALYTICAL LABORATORIES LTD.

Page 33: RPT ON THE MCMILLAN GOLD MINE

- t*

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cue

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N * if Z * M 9

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SU 9

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j) 5

f 38 b i -SURFACE

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3 z 5

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RIGHT!

VI O 5

> 3) m w S THDRAWN

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lint:

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CO

Page 34: RPT ON THE MCMILLAN GOLD MINE

Map 2312Mongowin and Curtin Townships

LEGEND

CENOZOIC*QUATERNARY

PLEISTOCENE AND RECENT

Sa~a, Qravpi. day.

UNCONFORMITY

PRECAMBRIAN*

LATE P RECAMBRIANDIABASE INTRUSIONS

! 4 Diabase, olivine tf.aca ^.

INTRUSIVE CONTACT

MIDDLE PRECAMBRIAN MONGOWIN PLUTON

1 3i Trondhjemite,'3ft D iorite, granodiorite.J3c Clifne arnQhitout?.

INTRUSIVE CONTACT

AMPHIBOLITE I NTRUSIONS

'2a Amphibolite '2t Porphyritic am

INTRUSIVE CONTACT

NIPISSING DIABASE

. amphibolite, lid Pyroxene gabbio.

INTRUSIVE CONTACT

HURONIAN SUPERGROUP

COBALT GROUPGORDON LAKE FORMATION

JOa A rgill'te. JOfj Sar.dstone.

CONFORMABLE CONTACT

LORRAIN FORMATION

9a fine-grained chetty sandstone 95 yVfiife.metf'ijm g rained sandstone.

90 Green feldspathic, mrcacfous sand stone.

9e Pink feldspathic sandstone.S( Grey sandstone.'JO Arg iHiie,9h Quartz and jasper pebole conglom-

erate.

CONFORMABLE CONTACT

GOWGANDA FORMATION

S Unsubdivided,3a Polymictic paraconglomerate, grey-

*ac*e matrix.8b Polymictic paraconglomerate, lami

nated argillite main*.Se Polymictic orthoconglomerate.grey

wacke main*.8d Polymictic conglomerate, proto-

queitz'te or subgreywacke matrix.de Siltstone, laminated argillite.81 Greywacke,8g Biotitic protoquartzite, subgrey-

wacke.8n feldspath re protoquartzite, subgrey-

wacke.

CONFORMABLE TO DISCONFORMABLE CONTACT

QUIRKE LAKE GROUPSERPENT FORMATION

7 UnsubdivtdectJla Feldspathic Quartzite, protoquart

zite.7b Biotitic protQQuart2tte, suogrey-

wacke.?c Polymictic conglomerate.7d Calcareous siltstone, calcareous

argillite, calcareous sandstone.7e Argillite, siltstone.

CONFORMABLE CONTACT

ESPANOLA FORMATION

6a Limestone, silty limestone.6b Calcareous siltstone, argillite.6c Calcareous sandstone,6d Chert, chert breccia./6e Scapolite hornfels.Gf Amphibotite.Sg Diopside idocrase grossularite

skarn.t

CONFORMABLE CONTACT

BRUCE FORMATION5a Pot/micdc conglomerate, greywacke

mat r i i.Sb Polymictic conglomerate.

calcareous greywacke matrix.t5c Polymictic conglomerate, subgrey-

wacke or protoquartzite matrix.f5d Calcareous siltstone, argillite, 11 roe

stone, f5e Argillite, laminated a/gitiite.t5f Sandstone.!

CONFORMABLE CONTACT

HOUGH LAKE GROUPMlSSISSAGI FORMATION

4a feldspathic sandstone.4o Biotitic senrjstorw.t4c Argillite, siltstone.tM Polymictic conglomerate.t

CONFORMABLE CONTACT

PECORS FORMATIONS

3a Biotitic protoquartzite, subgrey-wacke.

3b Argillite

CONFORMABLE CONTACT

RAMSAY LAKE FORMATION

2a Polymictic paraconglomerate, peb bly feldspathic sandstone./

CONFORMABLE CONTACT

ELLIOT LAKE GROUPMcK'M FORMATION/

la Muscovite and chloritic metapc-li le.Biolitic metapelite.

Jc . Plagioclase metapelite. id Chloritoid metapelite. 7e G arnet mettpelile. lg Biotitic protoquartzite, subgrey-

Breccia.

Au eUy cob Cu N)

1 S

W

Goia,Clay. t Cobaltite! Copper. Nickel. Quartz. Sulphide mmerat'zation. Silica. Tungsten. t

'Unconsolidated deposits. Cenozoic deposits arerepresented by trie iiQhter coloured areas o! "x?map.

v. Outcrop areas a nd inferred ettert- on s oi each rock map anil are sAiown respectively ' n

(Jeeo a nd iigrt tones ot the same colour. Where m piaces , a formation is too narrow to stiow colour and must be represented in black, a short bloc* bar ap pears in the appropriate 6 /oc*.

'Occurs only on companton sheet, Map 2JM Merritt ana Foster Tps.

ONTARIO DIVISION OF WINES

HONOURABLE LEO BERNIER M ttxster ot Haturat Resources

DR J K REYNOLDS. Deputy W in sler o ! Natural ResourcesG A Jewett. Executive Dwecfor. D ivision oi Mines E G f ye. Director Geological Branch

O

Lot l Adioinl Map 2311 Lot 12

SOURCES OF INFORMATION

Geology by K . D . Card and assistants. GeologicalBranch, 1966.Geology up-dated by K O. Card. Geological Branch,1968.Geology was no! tied to survfyeo lines.

Aeromagnetic map 152SG, G.5.C.

Geological Survey ot Canada.Map 18QA, Espanola Area, issued '917Map 1971. Lake Panache, issued 1925.

Preliminary maps:P. 39J Mongowin Township, sca'e I inch to X m ile,.'ssuefl J 967.P. 392 Curtin Township, scale ' inch to yt mile,issued 1967.

Cartography by C. A. Harris and assistants. Surveys and Mapping Branch, 1974.

Base map derived from maps o! Cte forest Resources Inventory, Surveys and Mapping Branch.

Magnetic decimation in the area was approximatelyr w, j970.

Map 2312

MONGOWIN AND CURTIN TOWNSHIPSSUDBURY DISTRICT

Scale 1:31,680 or l Inch to Vi Mile

2 M.la*

M*trM 1 000 3 Kitomatr

10.000 FMt

t,,,i V'v T^5^5.~ '*'T~^r ^^''^/

Scale l inch

NTS jelererice 41 1/4

SYMBOLS

Glacial striae.

Small bedrock outcrop.

Area of bedrock outcrop.

-t- l Betiding horizontal.

X

o-*

16

Bedding, top unknown; (inclined. vertical).

Bedding, top indicated by arrow: {in clined. ferticaJ, overturned).

deddinu, top iarrowj from grain gradation; [inclined, vertical, mer- turned.)

Bedding, top (arrow) from cross bedding; (inclined, vertical, over turned).

Schistosity; (bor'zontal, inclined. vertical).

foliation; (horizontal, inclined, vertical)-

Lineation with plunge.

Geological boundary, observed.

Geological boundary, position interpreted.

Fault; (observed, assumed). Spot indicates down throw side, arrows indicate horizonta/ movement.

Jointing; (horizontal, inclined, vertical).

Drag folds ttith plunge.

Ant'clirie, syncline, with plunge.

fold axis.

Drill hole; (vertical, inclined).

Vein, vein network. Width in inches.

Shaft.

Building.

Motor road. Provincial highway number encircled where appi:cable.

Other rood.

Trait, portage, w inter road.

Township boundary, meridian or base line with mitepost, approttmate position only.

Mining property, surveyed.

Mineral deposit; rnining property, unsurveyed.

Surveyed line, approximate position only.

District boundary, approximate posit ion onfy.

PROFKRTIB3. MINKBAL DjtPQSITEl

MONGOWIN TOWNSHIPf J. Clar*. Ralph H.f4, Day/on Explorations and Holdings Ltd, 15. Dayjon Explorations and Holdings Ltd.

t Me M Ulan mine).'6. faoff, -5,f 7 . Featherstone, C. J.t8. For iaAe occurrence.IS. G regory, Charles, estate (Majestic mine).X. International Nickel Co. of Canada Ltd., The.ft. Kirwan, G. L.22. New Aihona Mines Ltd.

23. Owen, J. F.

94. Riddell, Wm. H., estate.K. Sagima, Mary L.X. Sieyrist, E. A.t?. Wallace mine,

CURTIN TOWNSHIP29. Bailey, f , (fox Late occurrence). K. Bousquet mine. X. Bousquet, t.31. Boutin. P.32. Bridger occurrence.33. Bull, G. C. Jr.34. Clark, Ralph H.35. E wing. O. (Howry C reek mine).

X. International Moke/ Co. of Canada Lid., The.(Lawson Quarry).

37. Lehman, J. 3B. White. S. J. (Upsala mine).

Ownership ot properties as of Mafch 31, tS68. former properties on around now open tot staking are onty shown where exploration information is available. For further information see report.

63.4928 MONGOWIN S10

Page 35: RPT ON THE MCMILLAN GOLD MINE

g/g? fer-

225' Level

O 20 40 ' feet

1-PELITE

2-QUARTZITE

N/N

LOKI RESOURCES INC.MCMILLAN GOLD MINE

GEOLOGY k ASSAY PLAN(oz;ton)

KfcN LAPIERRE MBit M4HCH 14)86

63. 4928 M ONGOWIN 220

Page 36: RPT ON THE MCMILLAN GOLD MINE

LOKI RESOURCES INC.

MCMILLAN GOLD MINE

GEOLOGY 8* ASSAY PLANtoz/ton)

325' Level

O 20 40 feet

1-PELITE

2-QUARTZITE

41IC4NW0012 63.4928 MONGOWIN 230KiN LAPItflAt hBin MtRCH I9B6

Page 37: RPT ON THE MCMILLAN GOLD MINE

6 ST) S-3 —sZj

LOKI RESOURCES INC

MCMILLAN GOLD MINE

GEOLOGY 8. ASSAY PLAN (oz/ton)

425' LevelO 20 40 ' feet

1- PELITE

2-QUARTZITE

N/N

41I94NW6812 63.4928 MONGOKIINM*BCH 19BIS

Page 38: RPT ON THE MCMILLAN GOLD MINE

LOKI RESOURCES INC.MCMILLAN GOLD MINE

GEOLOGY 8, ASSAY PLANfoz/ton)

525' Level

O__20 40feet

1-PELITE

2-QUARTZITE

63.4923 MONGOWIN aso

Page 39: RPT ON THE MCMILLAN GOLD MINE

LOKI RESOURCES INC

MCMILLAN GOLD MINE

GEOLOGY 8, ASSAY PLANfoz/ton)

M Q v - s**. i U

625' Level

Q 20 40 feet

1-PELITE

2-QUARTZITE

N

4ll04N*eiei2 63,4928 MONGOWIN 2SO

Page 40: RPT ON THE MCMILLAN GOLD MINE

S?

LOKI RESOURCES INC.MCMILLAN GOLD MINE

GEOLOGY * ASSAY PLANCoz/ton)

750' Level

p 20 40 ' feet

1-PELITE

2-QUARTZITE

N/N

"EN LAPIERRE HBSt M ARCH

•tll04NW0ai2 63.4928 MONGOWIN

Page 41: RPT ON THE MCMILLAN GOLD MINE

LOKI RESOURCES INC.MCMILLAN GOLD MINE

GEOLOGY 8, ASSAY PLANfoz/ton)

875' Level

O 20 40 ' feet '

1-PELITE

2-QUARTZITE

N

63.4926 MONGOWIN 280

M1NC H Hi*