Technical Report October 2002

Transcription

TECHNICAL REPORT
ON THE
DRAYTON GOLD PROPERTY
DRAYTON TWP., PATRICIA MINING DIVISION
ONTARIO
FOR
RIO FORTUNA EXPLORATION CORP.
October 8, 2002
Toronto, Ontario, Canada
MPH Consulting Limited
Howard J. Coates, M. Sc., P.Geo.
MPH Reference: C-1915
DRAYTON GOLD PROPERTY, ONTARIO
TABLE OF CONTENTS
SUMMARY ..................................................................................................................................... i
1.0 INTRODUCTION.............................................................................................................. 1-1
1.1.
1.2.
1.3.
1.4.
1.5.
Introduction and Terms of Reference.......................................................................... 1-1
Disclaimer ....................................................................................................................... 1-1
Property and Agreements ............................................................................................. 1-1
Accessibility, Local Resources and Infrastructure ..................................................... 1-5
Physiography and Climate ............................................................................................ 1-6
2.0 HISTORY ........................................................................................................................... 2-1
2.1. The Sioux Lookout Region............................................................................................ 2-1
2.2. The Drayton Gold Property.......................................................................................... 2-2
2.2.1 The ‘FP61’ Prospect .............................................................................................. 2-2
2.2.2 The ‘WG16’ Prospect ............................................................................................ 2-3
2.2.3 The Shaft Prospect................................................................................................. 2-3
3.0 GEOLOGY AND GOLD DEPOSITS.............................................................................. 3-1
3.1. Tectonic Setting.............................................................................................................. 3-1
3.2. Regional Geology ........................................................................................................... 3-1
3.2.1 The Neepawa Group .............................................................................................. 3-4
3.2.2 The Minnitaki Group ............................................................................................ 3-4
3.2.3 Late Intrusive Rocks.............................................................................................. 3-4
3.3. Gold Deposits.................................................................................................................. 3-5
3.4. Geology and Gold Occurrences of the Drayton Gold Property ................................ 3-5
3.4.1 The Shaft Area ....................................................................................................... 3-7
3.4.2 The ‘WG16’ Area................................................................................................... 3-7
4.0 EXPLORATION................................................................................................................ 4-1
4.1. Nature and Extent of Work .......................................................................................... 4-1
4.2. Geological Mapping and Geophysical Surveys:.......................................................... 4-1
4.2.1 The Shaft Area ....................................................................................................... 4-1
4.2.2 The ‘WG16’ Area................................................................................................... 4-1
4.2.3 The ‘FP61’ Area..................................................................................................... 4-2
4.3. Drilling and Trenching.................................................................................................. 4-2
4.3.1 The Shaft Area ....................................................................................................... 4-2
4.3.2 The ‘WG16’ Area: ................................................................................................. 4-4
4.3.3 The ‘FP61’ Area..................................................................................................... 4-5
4.4. Logging/Sampling Method and Approach .................................................................. 4-5
4.5. Sample Preparation, Analyses and Security ............................................................... 4-6
4.6. Data Verification............................................................................................................ 4-6
4.7. Underground Workings ................................................................................................ 4-8
4.8. Exploration Potential..................................................................................................... 4-8
5.0 CONCLUSIONS AND RECOMMENDATIONS........................................................... 5-1
REFERENCES
CERTIFICATE
LIST OF TABLES
Table 1: Drayton Gold Property, List of Mining Rights........................................................ 1-4
Table 2: Drayton Gold Project-Vendor Samples, Shaft Area Trenches............................... 4-3
Table 3: Verification Samples by the Optionor and MPH Consulting................................. 4-8
LIST OF FIGURES
Figure 1: Location Map............................................................................................................. 1-2
Figure 2: Property Map............................................................................................................. 1-3
Figure 3: Regional Geology....................................................................................................... 3-2
Figure 4: Sioux Lookout Area Geology ................................................................................... 3-3
Figure 5: Property Geology, Drayton Gold Property............................................................. 3-6
Figure 6: Shaft Area Trench, Showing MPH Sample Locations........................................... 4-7
Appendix 1
MPH Grab Samples and Analytical Certificates
i
SUMMARY
Introduction
At the request of Mr Robert Swenarchuk, Senior Vice President, Corporate Development of Rio
Fortuna Exploration Corp. (“the Company”), MPH Consulting Limited (MPH), has completed an
independent report on the Company’s optioned Drayton Gold Property. This report is formally
an Independent Technical Report prepared to Canadian National Instrument 43-101 standards.
The report is based on information provided by and discussions with Company personnel and the
property vendor, Mr. Joe Riives, together with a field examination of the property.
The Drayton Gold Property is located in Drayton Township, Patricia Mining Division, Ontario
some 10 kms east-southeast of the town of Sioux Lookout. The area over which the Company
has mineral rights include six mining claims, comprising 87 units, covering an unsurveyed area
of some 1400 hectares. The claims are 100% owned by 1179785 Ontario Ltd. (“the Optionor”)
and are subject to an option to purchase agreement whereby the Company can earn a 100%
interest in the property, subject to a 2.5% Net Smelter Return Royalty (“NSR”) payable to the
Optionor, by making cash payments totalling $180,000, issuing 200,000 of its shares to the
Optionor, and carrying out a work commitment totalling $400,000. The Company has the right
to purchase 1.5 percentage units of the 2.5% NSR by paying the Optionor the amount of
$1,500,000 cash for the first 1.0 units, and by paying $1,500,000 for the second 0.5 units, leaving
the Optionor with a residual 1.0% NSR.
Access to the property is very good. The area is easily reached by road from the town of Sioux
Lookout. The total road distance to the property is approximately 20 kilometres. The property is
also readily accessible by boat or snowmobile on Lake Minnitaki depending on the season. The
various showings on the property may be easily reached by a combination of light truck, small
boat and/or light ATV.
History
The Sioux Lookout district has been intermittently explored for gold and other mineral deposits
since it was made reasonably accessible by the Canadian National Railway (“CNR”) in the latter
part of the 19th Century. The earliest known mineral production in the area was from the North
Pines Mines Limited underground pyrite mine located in Drayton Township some 12 kilometres
west of Sioux Lookout. This operation produced approximately 500,000 tonnes of pyrite
between 1909 and 1921.
The only gold significant production in the region came from the Goldlund Deposit located about
42 kilometres southwest of Sioux Lookout in Echo and McAree Townships. Discovered in
1941, Goldlund Mines Limited began processing stockpiled and underground auriferous material
in a 200 ton per day (180 t/day) pilot mill in 1982. An open pit commenced production in
January 1983. Approximately 100,000 tons (90,000 t) of material averaging about 0.15 oz Au/T
(5.14 g Au/t) was processed by Goldlund. The property was acquired by Camreco Inc. in
December 1986. Resources described as “drill indicated and probable reserves 442,600 tons
(401,400 tonnes) averaging 0.18 oz Au/T (6.17 g Au/t) plus 400,000 tons (363,000 t) averaging
0.16 oz Au/T (5.48 g Au/t) in several areas” are reported.
ii
There are three known mineral prospects on the Drayton Gold Property that have seen previous
work. These are termed the ‘FP61’, ‘WG16’ and ‘Shaft Area’ locations by the current Property
holders.
The ‘FP61’ Area Cu-Au-Mo prospect, also known as the McCombe Occurrence on Island FP61,
Minnitaki Lake, was originally staked in 1951 and optioned, firstly to Noranda Mines Limited,
and then to Rio Tinto Canadian Exploration, between 1957 and 1961. Norlode Resources Inc.
reacquired the prospect in the late 1980’s. The various companies conducted geophysics,
trenching and drilling programs.
The ‘WG16’ Area prospect, also known as the Wright-Hargreaves occurrence, located on the
north shore of East Bay, Lake Minnitaki was originally staked in the late 1940’s and
subsequently optioned to Wright-Hargreaves Mines Limited in 1951. Wright-Hargreaves
undertook a geological mapping and extensive sampling program before dropping the option. In
1991 and 1992, Teck Exploration Limited conducted a substantial systematic exploration
program on the showing and 2 kilometres along its possible eastward extension. The program
consisted of ground geophysics including magnetic, VLF electromagnetic and Induced
Polarization surveys followed by trenching and diamond drilling.
The Shaft Prospect was rediscovered in June 1998, when Glen Seim, former MNDM Resident
Geologist-Sioux Lookout unexpectedly located an old shaft on former Mining Location K171.
Shortly thereafter the current Property vendors staked the area. The vendors conducted
prospecting, geophysics, trenching and sampling programs in 1998 and1999.
Geology and Gold Deposits
The Drayton Gold Property lies within the Superior Province of the Canadian Shield, the world’s
largest Archean craton and host to a variety of mineral deposits. The western Superior Province
is well endowed with mineral riches including: the major gold mining districts of Rice Lake, Red
Lake, Pickle Crow, Long Lac and Hemlo; base metal massive sulphide (“VMS”) deposits
including Geco, Sturgeon Lake and Winston Lake; magmatic Ni-Cu and PGE deposits including
Shebandowan and Lac des Iles; and other miscellaneous commodities such as iron ore, rare
metal pegmatites and dimension stone.
The subprovince assemblages of the western Superior are usually juxtaposed along major
structural breaks or deformation zones. These breaks and their offshoots are high strain zones
characterized by widespread alteration features of various types, and the emplacement of quartz
veins that are often auriferous. All of the major gold producing areas of the western Superior
Province are associated with such tectonic zones.
The Sioux Lookout Lake area is located within the western Wabigoon Subprovince, a greenstone
belt terrane over 300 kilometres in length that stretches from Savant Lake in the east to beyond
Lake of the Woods in the west. The supracrustal rocks in the Sioux Lookout area include mafic
and felsic metavolcanic rocks, metasediments and related intrusive rocks that have been intruded
by Archean granitoid stocks. The lithological assemblages have been subdivided into five zones
from north to south including the Northern Volcanic Belt, the Northern Sedimentary Belt
(Abram Group), the Central Volcanic Belt (Neepawa Group), the Southern Sedimentary Belt
iii
(Minnitaki Group) and the Southern Volcanic Group (Turner and Walker, 1973). The Drayton
Gold Property contains portions of the Neepawa Group, the Minnitaki Group and part of the
Northeast Bay Stock which ranges in composition from trondhjemite to quartz diorite.
Gold occurrences in the Sioux Lookout area are of two styles including lode type deposits
associated with quartz +/- carbonate veins and stockworks in or near tectonic zones and a high
sulphidation feldspar porphyry related copper-gold-molybdenum type. .
• Auriferous Quartz Veins and Stockworks: The most common and widespread style of
gold mineralization in the area, auriferous quartz veins occur in a variety of orientations and
lithologic units including the various volcanic and volcaniclastic units as well as epizonal
plutons including quartz and quartz-feldspar porphyry dykes, and metadiorite and
metadiabase intrusions. Typical auriferous quartz +/- iron carbonate veins may contain
disseminated or blotchy sulphides, chiefly pyrite with minor chalcopyrite, sphalerite and
galena together with calcite, +/- ilmenite, +/- tourmaline and fuchite, with local native gold
and telluride minerals. The various host rocks adjacent to the veins may be sheared,
carbonatized, silicified and sulphide mineralized.
• Porphyry Related Cu-Au-Mo Mineralization: This type of mineralization occurs on the
current property on Island FP61 in Northeast Bay of Minnitaki Lakewhere where a northeast
trending hybrid contact zone between quartz porphyry and diorite intrusive rocks contains
disseminations, blotches and stringers of chalcopyrite, pyrrhotite and pyrite with rare specks
of molybdenite. The mineralization is frequently associated with randomly oriented quartzcarbonate veinlets and stringers and with nests of tourmaline needles. The contact zone
consists of brecciated mafic volcanics, dioritic rocks and granitoid material. The host rocks
of the mineralization are variably altered by silicification, sericitization and chloritization.
The best results to date from 13 diamond drill holes is 0.47% Cu and 0.018 oz Au/T (0.62 g
Au/t) over a core length of 70 feet (21.34 m).
As mentioned above the Drayton Gold Property contains portions of the Neepawa Group, the
Minnitaki Group and part of the Northeast Bay Stock. The Neepawa Group rocks comprise
northeast trending steeply dipping mafic to intermediate lavas and pillow lavas. The volcanic
rocks are juxtaposed with Minnitaki Group sediments along the Ruby Island Fault which cuts
through the southeastern corner of the claim group. On the property the Minnitaki Group
comprises a succession of northeast trending, steeply dipping, northwest younging slates,
argillites and graywackes.
The Northeast Bay Stock outcrops on several islands in Northeast Bay, Minnitaki Lake and on
the mainland near the entrance to Alcona Bay. The outer zone of this stock has compositions of
diorite and syenodiorite while the inner core ranges from trondhjemite to quartz diorite.
A series of east-northeasterly to northeasterly trending steeply dipping faults or shear zones have
been mapped on the property. These structures are known to contain lode style gold
mineralization located in two areas on the property.
Exploration
Exploration work on the Drayton Gold Property includes early work in the 1940’s and 1950’s, or
perhaps earlier, in the three known showing areas, for which there are no known detailed records.
iv
In the latter half of the 20th century, the ‘FP61’, ‘WG16’ and Shaft Areas have all been tested to
some degree by the localized use of modern techniques including geology, geophysics,
trenching, and surface sampling, while diamond drilling has been done at ‘FP61’ and ‘WG16’.
The current property was obtained in 1998, primarily to explore the long forgotten Shaft Area
which has not been systematically explored by modern methods. The current property vendors
have conducted some basic geophysical surveys and trenching in the Shaft Area and other
interested parties including the Optionor and MPH have examined the property and collected
grab samples. The exploration done to date outside of the ‘WG16’ and the ‘FP61’ areas is
rudimentary in nature and is mostly limited to prospecting and trenching. A large part of the
property, to the knowledge of MPH, has never been tested by modern systematic integrated
exploration methods.
To date there are no known records of modern multidisciplinary exploration work in the Shaft
Area. Even the showings unearthed by the vendors could be further opened up and more
systematically sampled by more rigorous channel rather than chip and grab sampling. It is
therefore apparent that the Drayton Gold Project has significant untested exploration potential
that may be readily evaluated by as yet untried modern methods. The favorable location of the
property vis a vis accessibility and exploration expertise should allow such work to be completed
inexpensively by Canadian standards. MPH ranks this as a high priority target.
The ‘WG16’ Area is intriguing because of its structural setting and widespread gold
mineralization. However the full extent of previous modern exploration does not appear to be
known to the Company at present. The Company should attempt to acquire the full Teck
database and reassess the target area in the light of more complete knowledge.
The ‘FP61’ Area target has not been tested to any degree away from the showing area. The
mineralization indicated so far is low grade so only a large-tonnage open-pit situation would be
of potential commercial interest. Even if this situation were present, the physiographic location
in a major drainage system would likely preclude development. MPH ranks this as a low priority
target.
Conclusions and Recommendations
MPH concludes that the Drayton Gold Property of the Company represents a good opportunity to
explore for gold in an area containing several known showings. At least one of the three main
showings and the intervening areas between them have not been explored by state of the art
methods. It is concluded that the application of such methods is fully warranted and justified.
A two phase program for exploration of the property by means of geological mapping,
prospecting, geophysics, trenching and drilling is recommended. The first phase is designed to
establish specific targets for drilling and mechanized trenching with an allowance for a limited
amount of trenching, while the second is a provisional phase to adequately test such targets by
diamond drilling and/or trenching.
The initial phase 1 work will be a compilation of previous exploration completed on or near the
claim group. This will include a detailed compilation of previous work throughout the property,
especially that done by Teck Exploration in the early 1990’s in the ‘WG16’ Area. A grid will be
v
established for control and to tie in the trench areas at the Shaft Area. The grid will cover the
northeastern half of the claim group and should tie into the Teck grid if possible and practical.
Magnetics will be completed on the entire new grid and IP will be completed on selected lines in
the Shaft Area to determine if IP or resistivity features associated with the gold mineralization
can be detected. The claim group geology will be mapped utilizing the grid. The trenches and
showings will be mapped and sampled systematically where needed. It is anticipated that a minor
amount of trenching and sampling will need to be completed to firm up drill targets. A budget of
approximately $92,000 is required to complete the phase 1 work.
The second phase is conditional upon a successful first phase. However it is considered
reasonable to make provision for some ongoing work such as additional IP, trenching and a
limited diamond drilling program to test the known mineralized areas and possible geophysical
targets. An unallocated amount of approximately $300,000 is recommended for this purpose.
The grand total required to adequately complete the two phase exploration program on the
Drayton Gold Property is approximately $392,000.
1-1
1.0 INTRODUCTION
1.1.
Introduction and Terms of Reference
At the request of Mr Robert Swenarchuk, Senior Vice President, Corporate Development of Rio
Fortuna Exploration Corp. (“the Company”), Suite 1550, 1185 West Georgia Street, Vancouver,
British Columbia, MPH Consulting Limited (MPH), of Suite 615, 133 Richmond Street West,
Toronto, has completed an independent report on the Company’s optioned Drayton Gold
Property. This report is formally an Independent Technical Report prepared to Canadian
National Instrument 43-101 (“NI 43-101”), Form 43-101F1, Technical Report and Companion
Policy 43-101CP standards. The purpose of the exercise is to critically review and complement
in-house due diligence work carried out by and on behalf of the Company and to prepare a
document that may be filed under Canadian securities legislation.
The report is based on information provided by and discussions with Company personnel and
the property vendor, Mr. Joe Riives, together with a field examination of the property. The
Drayton Gold Property was visited by the undersigned on September 13 and 14, 2002 in the
company of Mr. Riives, a resident of Dryden, Ontario. The report was prepared in Toronto,
Canada in October, 2002. MPH acknowledges the assistance of the Company, Joe Riives, and
John Wakeford of the Optionor in making information available to complete this study.
1.2.
Disclaimer
In preparing this report, MPH has relied on files provided by the Company, published papers and
government documents, that are listed in the References section at the conclusion of this
document.
Draft copies of the Report have been reviewed by the Company for factual errors. Any changes
made as a result of these reviews did not involve any alteration to the conclusions made. Hence,
the statement and opinions expressed in this Report are given in good faith and in the belief that
such statements and opinions are not false and misleading at the date of this assignment.
1.3.
Property and Agreements
The Drayton Gold Property is located in Drayton Township, Patricia Mining Division, Ontario
some 10 kms east-southeast of the town of Sioux Lookout (Figure 1). The area over which the
Company has mineral rights include six mining claims, comprising 87 units, covering an
unsurveyed area of some 1400 hectares (Figure 2). A summary of mineral rights is provided in
Table 1.
50 km
Sioux Lookout
.
Thunder Bay
Pickle Lake
Rio Fortuna Exploration Corp.
Drayton Gold
Property
Drayton Gold Property
.Kenora
Figure 1: Location Map
1-2
1162939**
1199272**
1162940**
** claims have been added to MNDM plan, recently staked but accepted but not entered on MNDM maps
1167088**
DRAYTON TOWNSHIP
CLAIM LOCATION MAP
Figure 2: Property Map
1-3
UNITS
12
16
12
16
16
15
87
CLAIM
NUMBER
PA-1216505
PA-1199271
PA-1167088
PA-1162939
PA-1199272
PA-1162940
TOTAL
1409
243
259
259
194
259
194
SIZE
(Hectares)
Hectares
July 2, 2002
May 13, 2002
May 13,2002
May 7, 2002
April 30, 2002
June 26, 1998
RECORDING
DATE
July 2, 2004
May 13, 2004
May 13, 2004
May 7, 2004
April 30, 2004
June 26, 2006
WORK DUE
DATE
Table 1: Drayton Gold Property, List of Mining Rights
1179785 Ontario
Limited (100%)
OWNERSHIP
4 yr. period, plus provision of
200,000 free trading shares of
the optionee, plus a 2.5% NSR
royalty w. partial buy out
provision, plus a $400,000 work
commitment over 4 years.
payments totaling $180,000 over
holds option to earn 100% int.
by making series of cash
AGREEMENTS
2.5% NSR, w. buy out
of first 1% for $1.5 mil.,
and 2nd 0.5% for $1.5 mil.,
retained 1%
ROYALTIES
1-4
1-5
The claims are 100% owned by Ontario 1179785 Ontario Ltd. (“the Optionor”) and are subject
to an option to purchase agreement whereby the Company can earn a 100% interest in the
property, subject to a 2.5% Net Smelter Return Royalty (“NSR”) payable to the Optionor, by
making cash payments totalling $180,000, issuing shares to the Optionor, and carrying out a
work commitment as follows:
• $10,000 cash payment on signing of the Option Agreement
• $10,000 cash on or before March 31, 2003
• $25,000 cash on or before January 3, 2004
The Company will also issue the Optionor, 200,000 of its shares in accordance with the
following schedule, subject to regulatory approval:
• 50,000 shares upon initial exchange approval
• 50,000 shares on completion of the phase 1 program
• 100,000 shares on completion of the phase 2 program
The Company will also be responsible for carrying out a work commitment totaling $400,000 on
the property as follows:
• $50,000 in expenditures before October 1, 2003
The Company has the right to purchase 1.5 percentage units of the 2.5% NSR by paying the
Optionor the amount of $1,500,000 cash for the first 1.0 units, and by paying $1,500,000 for the
second 0.5 units, leaving the Optionor with a residual 1.0% NSR.
The status of the mineral rights, surface rights and details of agreements have not been certified
by MPH Consulting Linited.
1.4.
Accessibility, Local Resources and Infrastructure
Access to the property is very good. The area is reached from the town of Sioux Lookout, by
proceeding easterly on paved Highway 642 to Superior Junction and the hamlet of Alcona. From
Alcona, the Alcona Bay secondary road leads westward to the property and a private boat
landing (permission required) on Alcona Bay, Minnitaki Lake. The total road distance to the
property is approximately 20 kilometres. The property is also readily accessible by boat or
snowmobile on Lake Minnitaki depending on the season. The various showings on the property
may be easily reached by a combination of light truck, small boat and/or light ATV.
The Canadian National Railway crosses Highway 642 at Superior Junction, the closest railhead,
located some 8 kilometres north-northeast of the property. There is a small municipal airport at
Sioux Lookout as well as a float plane base.
1-6
Sioux Lookout is a regional centre for the forestry and tourism industry in northern Ontario.
Sioux Lookout can provide modern housing as well as educational, medical, recreational and
shopping facilities. Labour, industrial supplies and services for mining and exploration activities
are readily available in the region.
The property has no on site permanent facilities. Other facilities and services such as telephone
lines, adequate electrical energy for a mining/ milling operation and an adequate fresh water
supply are all situated within several kilometres of the Property.
1.5.
Physiography and Climate
The Drayton Gold Property has low to moderate relief and undulating terrain with elevations to
approximately 365 metres above sea level. The main drainage feature in the area is Minnitaki
Lake which is part of the major English River drainage system. Most of the property is covered
by a combination of glacial overburden and water, although fairly abundant outcrop is found
along the Lake Minnitaki shoreline and in scattered places inland. The overburden is
predominantly sand and gravel, with a few low-lying swampy areas.
Climatic conditions are typical of northwestern Ontario. Mean total precipitation for Sioux
Lookout is 716.1 millimetres including 517.2 mm of rainfall and 204.0 cm of snowfall. Mean
July daily temperature is 18.6o C while mean January daily temperature is –18.6o C (SourceMeteorological Service of Canada).
2-1
2.0 HISTORY
2.1.
The Sioux Lookout Region
The Sioux Lookout district has been intermittently explored for gold and other mineral deposits
since it was made reasonably accessible by the Canadian National Railway (“CNR”) in the latter
part of the 19th Century. The earliest known mineral production in the area was from the North
Pines Mines Limited underground pyrite mine located in Drayton Township some 12 kilometres
west of Sioux Lookout. This operation produced approximately 500,000 tonnes of pyrite
between 1909 and 1921 (Johnston, 1972).
The only gold significant production in the region came from the Goldlund Deposit located about
42 kilometres southwest of Sioux Lookout in Echo and McAree Townships. Discovered in 1941
the deposit was tested by extensive surface stripping, trenching and diamond drilling by Lunward
Gold Mines Limited between 1941 and 1948. Newlund Mines Limited continued this work
between 1949 and 1952 by sinking a 825 foot (251 m) vertical shaft with extensive lateral
development and underground diamond drilling (Ferguson, et. al., 1971). In July 1982, after a
long dormant period, Goldlund Mines Limited began processing stockpiled and underground
auriferous material in a 200 ton per day (180 t/day) pilot mill. An open pit commenced
production in January 1983. The test mining operation ceased in March 1985 after the company
declared bankruptcy. Approximately 100,000 tons (90,000 t) of material averaging about 0.15
oz Au/T (5.14 g Au/t) was processed by Goldlund. The property was acquired by Camreco Inc.
in December 1986. Resources described as “drill indicated and probable reserves 442,600 tons
(401,400 t) averaging 0.18 oz Au/T (6.17 g Au/t) plus 400,000 tons (363,000 t) averaging 0.16
oz Au/T (5.48 g Au/t) in several areas” are reported (Canadian Mines Handbook, 1988-1989).
The NI 43-101 classification of this material is undetermined.
Three gold prospects are known outside the Drayton Gold Property along the same geological
trend along an approximate strike length of 35 kilometres. These include the Burnthut Island and
Neepawa Island occurrences (Johnston, 1972) located west of the Property and the Alcona Mine
prospect (ODM, 1937) to the east-northeast. MPH has not conducted an exhaustive search for
reports of work outside of the current Property.
The Burnthut Island prospect, located at the entrance to Lyons and Troutfish Bays, Minnitaki
Lake, is one of the oldest known gold occurrences in the Sioux Lookout area. It was explored by
a group called the Harvey Syndicate that sunk a 50 foot (15 m) shaft in 1897-98 (Ferguson, et.
al., 1971). The property was reactivated by Ourgold Mining Company Limited in 1947-48 and
work including 21 diamond drill holes totaling 5,028 feet (1533 m) was completed. The same
company completed another 2,300 feet (700 m) of drilling between 1961-62. No reports of gold
resource estimations are known to MPH.
The Neepawa Island gold occurrences were found about 3 kilometres west-southwest of the
current Property in 1950 (Johnston, 1972). Central Manitoba Mines Limited drilled 24 holes
totalling 3940 feet (1201 m) on the west side of the island during 1950 and 1951. Another
company, Neepawa Island Gold Mines Limited, drilled 18 short holes totalling 665 feet (203 m)
2-2
on the east side of the island in 1950. No reports of gold resource estimations are known to
MPH.
The Alcona Mine prospect, located some 7 kilometres east-northeast of the property, was first
staked in October 1929 by George and Stanley Michaud of the nearby hamlet of Alcona on the
former CNR branch line leading southward to Thunder Bay from Superior Junction. A group of
companies including firstly, Consolidated Mining and Smelting Company of Canada Limited,
then Atlas Exploration Company Limited, followed by Alcona Gold Mines and Alcona Mines
Limited conducted work on the prospect between 1929 and 1937 (ODM, 1937). The early work,
from 1930 to 1933, consisted of extensive trenching, test pitting and 5 diamond drill holes
totaling 1,960 feet (597 m) on three vein systems (Veins 1, 2 and 3). From September 1936 to
May 1937 Alcona Mines Limited sunk a 3-compartment vertical shaft to a depth of 325 feet (99
m) with levels at 180 and 305 feet (55 and 93 m).
The Alcona Mine area was included in the Alcona-Split Lake property of Cream Silver Mines
Limited, comprising 31 staked mining claims acquired in 1988. The property was subsequently
optioned to Valerie Gold Resources Limited. Between 1988 and 1991 the two companies
completed exploration work in Alcona Mine area including geological mapping, ground
geophysics including magnetic and VLF electromagnetic surveys, trenching/washing/channel
sampling activities and six diamond drill holes totalling 1075 feet (328 m). No reports of gold
resource estimations are known to MPH.
2.2.
The Drayton Gold Property
There are three known mineral prospects on the Drayton Gold Property that have seen previous
work. These are termed the ‘FP61’, ‘WG16’ and ‘Shaft Area’ locations by the current Property
holders. See Figure 5 in Section 3.4 following for locations of these prospects.
2.2.1 The ‘FP61’ Prospect
This Cu-Au-Mo prospect, originally known as the McCombe Occurrence on Island FP61,
Minnitaki Lake, was originally staked in 1951, but allowed to lapse, by J. Donnelly of
Port Arthur (Johnston, 1972). R. J. McCombe of Sioux Lookout restaked the claims and
optioned them, firstly to Noranda Mines Limited, and then to Rio Tinto Canadian
Exploration, between 1957 and 1961. Noranda reportedly conducted an electromagnetic
survey before dropping its option while Rio Tinto completed an Induced Polarization
survey, did some trenching, and drilled 5 holes totalling 1,659 feet (506 m) before doing
likewise. The best reported drill intersection was in hole M-1 from 247.0 to 291.5 feet
(75 to 89 m), a 44.5 foot (14 m) core length averaging 0.57% Cu and 0.04 oz Au/T (1.37
g Au/t), including a 12 foot (3.66 m) section averaging 1.20% Cu and 0.065 oz Au/T
(2.23 g Au/t). The same hole also intersected 0.25% Cu and 0.22 oz Au/T (7.54 g Au/t)
over 5 feet (1.52 m) between 205.0 and 210.0 feet (62.48 and 64.0 m).
Norlode Resources Inc. reacquired the prospect in the late 1980’s and drilled 7 shallow
AX (1 3/8”) holes totalling 1,403 feet (428m) from three locations in essentially the same
area as tested previously by Rio Tinto. Norlode encountered similar grades and core
2-3
lengths as before, with its best drill intersection from DDH 88-3, between 65.0 and 135
feet (19.81 to 41.15 m), a core length of 70 feet (21.34 m) assaying 0.47% Cu and 0.018
oz Au/T (0.62 g Au/t) including a 6.0 foot (1.83 m) section assaying 1.61% Cu and 0.093
oz Au/T (3.19 g Au/t).
2.2.2 The ‘WG16’ Prospect
This prospect, also known as the Wright-Hargreaves occurrence, located on the north
shore of East Bay, Lake Minnitaki was originally staked in the late 1940’s by R. J.
McCombe of Sioux Lookout, who conducted trenching and limited x-ray drilling in 1948
before optioning his property to Wright-Hargreaves Mines Limited in 1951 (Johnston,
1972). Wright-Hargreaves undertook a geological mapping and extensive sampling
program before dropping the option.
The prospect was visited in the summer of 1980 by A. A. Speed of the Ontario
Geological Survey (Speed, 1980). A few old trenches and a small amount of x-ray core
were observed in the area.
In 1991 and 1992, Teck Exploration Limited conducted a substantial systematic
exploration program on the showing and 2 kilometres along its possible eastward
extension (Janzen, 1992). The program consisted of ground geophysics including
magnetic, VLF electromagnetic and Induced Polarization surveys followed by trenching
and diamond drilling. In all the program included 35 km of magnetic and VLF-EM
surveying, 9.3 km of time domain dipole-dipole IP/resistivity surveying, 6 backhoe
trenches and 9 diamond drill holes totalling 1029m were completed. The work traced a
mineralized silica-carbonate altered contact zone over a distance of 1,100 metres but only
found anomalous sub-economic gold grades so the property was relinquished.
2.2.3 The Shaft Prospect
During the course of mapping the Abram Lake Sheet, Map 2243, F. J. Johnston observed
some old trenching and one diamond drill location near the southeastern corner of Mining
Location K171 one of three former patented claims in the area (Johnston, 1972). There is
no known public record of this work.
In June 1998, Glen Seim, former MNDM Resident Geologist-Sioux Lookout
unexpectedly located an old shaft on former Mining Location K171 and shortly thereafter
the current Property vendors staked the area (Riives, 2000). In 1998 prospectors I. J.
Riives and A. Glatz secured the shaft collar by stringing heavy steel wire around it and
also measured its length (25 metres minimum) by depth sounding with a fishing line and
weight. Also in 1998, the prospectors installed a flagged grid on which they conducted
3.4 line kilometres of magnetic and VLF-EM surveying. Manual and limited backhoe
trenching was done in the shaft area at this time. Several grab samples from the trenches
and old muck pile beside the shaft returned interesting gold values including two samples
exceeding 1 oz Au/T (34.28 g Au/t).
2-4
In 1999 the prospectors secured funding to conduct further work under the Ontario
Prospector Assistance Program (OPAP 99-396). Six new backhoe trenches were dug,
washed where possible and sampled (approximately 30 samples) mostly by grab samples,
with a few chip and sawed channel samples. Again some samples returned interesting
gold values.
3-1
3.0 GEOLOGY AND GOLD DEPOSITS
3.1.
Tectonic Setting
The Drayton Gold Property lies within the Superior Province of the Canadian Shield, the world’s
largest Archean craton and host to a variety of mineral deposits. The western Superior Province
is well endowed with mineral riches including: the major gold mining districts of Rice Lake, Red
Lake, Pickle Crow, Long Lac and Hemlo; base metal massive sulphide (“VMS”) deposits
including Geco, Sturgeon Lake and Winston Lake; magmatic Ni-Cu and PGE deposits including
Shebandowan and Lac des Iles; and other miscellaneous commodities such as iron ore, rare
metal pegmatites and dimension stone (Franklin and Schneiders, 1990).
The western Superior Province is divided into subprovinces each with distinctive lithological and
structural/metamorphic characteristics (Card and Ciesielski, 1986). These are broadly classified
as volcano-plutonic (greenstone belts), metasedimentary, and plutonic/high grade gneiss terranes.
From north to south the western Superior Province is divided into the Sachigo (greenstone),
Berens River (plutonic/gneissic), Uchi (greenstone), English River (metasedimentary), Winnipeg
River (plutonic/gneissic), Wabigoon (greenstone) and Quetico (metasedimentary) Subprovinces.
The supracrustal rocks of the various subprovinces are of Archean age within a temporal range
from approximately 3,000 Ma to 2,700 Ma.
The subprovince assemblages of the western Superior are usually juxtaposed along major
structural breaks or deformation zones. Similar major breaks occur inside subprovinces such as
the Cochenor-Gullrock Lake, East Bay and Post Narrows and other deformation zones at Red
Lake in the Uchi Subprovince (Andrews, et. al., 1986) and the Cameron Lake and Monte Cristo
shear zones in the Wabigoon Subprovince (Melling, et. al., 1986). These breaks and their
offshoots are high strain zones characterized by widespread alteration features of various types,
and the emplacement of quartz veins that are often auriferous. All of the major gold producing
areas of the western Superior Province are associated with such tectonic zones.
3.2.
Regional Geology
The Sioux Lookout Lake area is located within the western Wabigoon Subprovince, the
greenstone belt terrane over 300 kilometres in length that stretches from Savant Lake in the east
to beyond Lake of the Woods in the west (Figure 3). The supracrustal rocks in the Sioux
Lookout area include mafic and felsic metavolcanic rocks, metasediments and related intrusive
rocks that have been intruded by Archean granitoid stocks (Figure 4). The lithological
assemblages have been subdivided into five zones from north to south including the Northern
Volcanic Belt, the Northern Sedimentary Belt (Abram Group), the Central Volcanic Belt
(Neepawa Group), the Southern Sedimentary Belt (Minnitaki Group) and the Southern Volcanic
Group (Turner and Walker, 1973). The Drayton Gold Property contains portions of the Neepawa
Group, the Minnitaki Group and part of the Northeast Bay Stock which ranges in composition
from trondhjemite to quartz diorite. The remainder of this section will deal exclusively with the
latter assemblage.
Regional Geology
Figure 3:
3-2
%
%
%
HWY
17
SIOUX LOOKOUT
%
%
MAFIC VOLCANICS
METASEDIMENTS
MAFIC/ ULTRAMAFIC
INTRUSIVE ROCKS
FELSIC INTRUSIVE ROCKS
LEGEND – SIMPLIFIED GEOLOGY
25 km
%
DRAYTON GOLD
PROPERTY
Figure 4; Sioux Lookout Area Geology
3-3
3-4
3.2.1 The Neepawa Group
The Neepawa Group southeast of Sioux Lookout is juxtaposed with the Abram Group to
the north along the Abram Lake/Little Vermillion Fault system and with the Minitaki
Group to the south along the Ruby Island and related faults (Johnston, 1972). The
volcanic belt comprises two volcanic/volcaniclastic sequences with the first including
basaltic to andesitic lavas, pillow lavas and variolitic lavas together with basaltic to
dacitic volcaniclastic and epiclastic units ranging from tuffs to agglomerate and breccia.
Minor iron formation and quartzite is also present in this sequence. The second sequence
is rhyolitic to dacitic in composition including rhyolite, porphyritic rhyolite and dacite
flows plus felsic tuffs and agglomerate. The volcanic units are locally intruded by early
quartz porphyry, felsite and trachyte dykes and late granitic, syenodiorite, diorite and
gabbro plutons.
Most younging determinations in the Central Volcanic Belt indicate a sub-vertical
northeast-trending southerly-facing succession, although local deviations may occur
adjacent to intrusive rocks. As noted above the belt is bounded on both sides by
prominent northeasterly-trending sub-vertical strike fault systems. Widespread lesser
faults and shear zones with a variety of orientations are present throughout the belt. A
number of gold occurrences are associated with some of these structural features.
3.2.2 The Minnitaki Group
The Minnitaki Group or Southern Metasedimentary Belt contains deep water sediments
including slates, and periodic turbidite cycles ranging from graded slates, graded arkoses
and graywackes, to polymictic conglomerates. The conglomerates contain rounded
pebbles and boulders of quartz and quartz-feldspar porphyry with minor felsic and mafic
volcanic and granitic fragments. Angular slate and laminated slate fragments are locally
common in the conglomerates (Johnston, 1972).
The sedimentary rocks are structurally complex in the East Bay, Minnitaki Lake area.
Three major strike faults, (Ruby Island, East Bay and Twinflower Faults) and several
lesser breaks disrupt the succession, while a series of upright anticlinal and synclinal
folds further complicate the picture.
3.2.3 Late Intrusive Rocks
The Neepawa Group volcanic rocks in the northeastern Minnitaki Lake area are intruded
by two zoned stocks, the David-Allan Lakes Stock and the Northeast Bay Stock. These
oval shaped bodies are characterized by outer zones including gabbro, hornblende diorite
diorite and syenodiorite and inner cores ranging from quartz-‘eye’ trondhjemite to quartz
diorite (Johnston, 1972).
3-5
3.3.
Gold Deposits
Gold occurrences in the Sioux Lookout area are of two styles including lode type deposits
associated with quartz +/- carbonate veins and stockwork in or near tectonic zones and a high
sulphidation feldspar porphyry related copper-gold-molybdenum type. .
• Auriferous Quartz Veins and Stockworks: The most common and widespread style of
gold mineralization in the area, auriferous quartz veins occur in a variety of orientations and
lithologic units including the various volcanic and volcaniclastic units as well as epizonal
plutons including quartz and quartz-feldspar porphyry dykes, and metadiorite and
metadiabase intrusions. Examples of this type of mineralization can be found at the
Goldlund Mine 42 kilometres southwest of Sioux Lookout, the Shaft Area on the current
property, the Alcona Mine area, and the Neepawa Island and Burnthut Island occurrences at
Minnitaki Lake. Typical auriferous quartz +/- iron carbonate veins may contain disseminated
or blotchy sulphides, chiefly pyrite with minor chalcopyrite, sphalerite and galena together
with calcite, +/- ilmenite, +/- tourmaline and fuchite, with local native gold and telluride
minerals. The various host rocks adjacent to the veins may be sheared, carbonatized,
silicified and sulphide mineralized.
• Porphyry Related Cu-Au-Mo Mineralization: This type of mineralization occurs on the
current property on Island FP61 in Northeast Bay of Minnitaki Lakewhere where a northeast
trending hybrid contact zone between quartz porphyry and diorite intrusive rocks contains
disseminations, blotches and stringers of chalcopyrite, pyrrhotite and pyrite with rare specks
of molybdenite. The mineralization is frequently associated with randomly oriented quartzcarbonate veinlets and stringers and with nests of tourmaline needles. The contact zone
consists of brecciated mafic volcanics, dioritic rocks and granitoid material (Johnston, 1972).
The host rocks of the mineralization are variably altered by silicification, sericitization and
chloritization. The best results to date from 13 diamond drill holes (5 by Rio Tinto Canadian
Exploration in 1961 and 8 by Norlode Resources Inc, in 1988) is from DDH 88-3 which
assayed 0.47% Cu and 0.018 oz Au/T (0.62 g Au/t) over a core length of 70 feet (21.34m)
(Dowhaluk, 1988).
3.4.
Geology and Gold Occurrences of the Drayton Gold Property
As mentioned above the Drayton Gold Property contains portions of the Neepawa Group, the
Minnitaki Group and part of the Northeast Bay Stock (Figure 5). The Neepawa Group rocks
comprise northeast trending steeply dipping mafic to intermediate lavas and pillow lavas. The
volcanic rocks are juxtaposed with Minnitaki Group sediments along the Ruby Island Fault
which cuts through the southeastern corner of the claim group. On the property the Minnitaki
Group comprises a succession of northeast trending, steeply dipping, northwest younging slates,
argillites and graywackes (Johnston, 1972).
The Northeast Bay Stock outcrops on several islands in Northeast Bay, Minnitaki Lake and on
the mainland near the entrance to Alcona Bay. The outer zone of this stock has compositions of
diorite and syenodiorite while the inner core ranges from trondhjemite to quartz diorite. The
trondhjemite facies is a quartz-‘eye’ porphyritic granitoid unit containing 10 to 50% quartz, up to
80% sodic plagioclase (oligoclase) and 0 to 10% alkali feldspar with minor chlorite, biotite,
sericite and apatite. (Johnston, 1972)
WG 16
G8423
FP61
G8418
Ontario Division of Mines
Map 2243 Published 1967
0.5 miles
800 m
MPH Grab Sample
G8419
SHAFT
AREA
Figure 5: Property Geology
3-6
3-7
A series of east-northeasterly to northeasterly trending steeply dipping faults or shear zones have
been mapped on the property. These structures are known to contain lode style gold
mineralization located in two areas on the property including the Shaft and ‘WG16’ areas. The
other type of mineralization found on the property in the ‘FP61’ area was previously described in
Section 3.3 above.
3.4.1 The Shaft Area
The mineralization in this area consists of quartz veins containing sulphides and variable
amounts of gold that have been intermittently traced by limited recent surface trenching
over an approximately 450 metre strike length. The veins in this area are contained in
mafic volcanic and quartz porphyry hosts that are sheared, silicified and carbonatized.
The old shaft area has been partially trenched and stripped by the current property
vendors to reveal a mineralized zone at the contact between altered volcanic rocks and
porphyry. This zone is characterized by a discrete quartz vein at the contact and similar
veinlets stringers and possible weathered sulphides in the adjacent porphyry. Anomalous
to highly anomalous gold values have been reported by different sources in the veins and
also in the porphyry.
This area lies on a prominent structural feature, a splay or offshoot of the Ruby Island
Fault which is part of the same system that hosts the ‘WG16’ prospect on the current
Property (see below) as well as the Neepawa Island and Burnthut Island prospects located
to the west.
3.4.2 The ‘WG16’ Area
This area is located at the contact zone between the Neepawa Group volcanics to the
north and the Minnitaki Group sediments to the south. The contact zone is carbonate
(ankerite)-silica altered shear zone with quartz-carbonate veins and stringers,
approximately 5 metres thick, with 3-5% pyrite and trace molybdenite mineralization
(Janzen, 1992). The contact zone has a minimum strike length of 1100 metres that has
been tested by outcrop sampling, surface trenching, geophysical surveys and 9 shallow
diamond drill holes.
On the basis of widespread sampling the distribution of gold mineralization within this
contact zone is highly variable ranging from <5 ppb to 1.5 g Au/t across the whole
approximately 5 metre section. The best drill sample was a 1.0 metre core length sample
assaying 2.03 g Au/t.
4-1
4.0 EXPLORATION
4.1.
Nature and Extent of Work
Exploration work on the Drayton Gold Property includes early work in the 1940’s and 1950’s, or
perhaps earlier, in the three known showing areas, for which there are no known detailed records.
In the latter half of the 20th century, the ‘FP61’, ‘WG16’ and Shaft Areas have all been tested to
some degree by the localized use of modern techniques including geology, geophysics,
trenching, and surface sampling, while diamond drilling has been done at ‘FP61’ and ‘WG16’.
The current property was obtained in 1998, primarily to explore the long forgotten Shaft Area
which has not been systematically explored by modern methods. The current property vendors
have conducted some basic geophysical surveys and trenching in the Shaft Area and other
interested parties including the Optionor and MPH have examined the property and collected
grab samples. The exploration done to date outside of the ‘WG16’ and the ‘FP61’ areas is
rudimentary in nature and is mostly limited to prospecting and trenching. A large part of the
property, to the knowledge of MPH, has never been tested by modern systematic integrated
exploration methods.
4.2.
Geological Mapping and Geophysical Surveys:
The Property is covered by excellent quality 1:31,680 scale (1” to ½ mile) geological mapping
(ODM Map 2243) as well as ODM-GSC aeromagnetic coverage at 1:50,000 and 1:250,000
scales.
Although there is a significant amount of outcrop and bedrock opened up by the 1998-99
trenches there is no detailed geological map of this area.
The current property vendors installed a flagged baseline, 1800 metres in length, on a
bearing of 060 degrees running through the old shaft location. Cross lines at 100 metre
intervals from 200 metres west to 400 metres east of the shaft were tested by magnetic
and VLF electromagnetic surveys. The VLF-EM survey produced an anomalous
conductive response roughly coincident with the mineralized zone that was traceable the
length of the survey. No more sophisticated surveys such as horizontal loop
electromagnetic (HLEM) or Induced Polarization/resistivity (IP) surveys have been done
in the area.
4.2.2 The ‘WG16’ Area
There is no detailed geological map of this area currently available to MPH, although it
seems likely that there should have been a surface plan with geology, trench and drill
hole locations prepared by Teck Exploration Ltd.during its 1992 program. The Company
should try to locate this and any other potential data that might be available.
In its 1992 program Teck undertook ground geophysics including magnetic, VLF-EM
and IP surveys (Janzen, 1992). Thirty-five line kilometres of magnetic and VLF-EM
4-2
were completed with readings at 25 metre stations along the lines using a Scintrex MP-2
magnetometer and a Geonics EM-16 VLF unit. Time domain dipole-dipole IP surveying
(n=1 to 4), using a Phoenix IP V-4 Turbo receiver and a Phoenix IP T-1 TX transmitter,
has been completed on selected lines along a 2 kilometre strike length of the NeepawaMinnitaki Groups contact, proceeding eastward from the ‘WG16’ showing. The only
documentation of this work available to MPH is a 1:5,000 scale plan showing the IP
interpretation.
The current vendors have not conducted any work in this area.
4.2.3 The ‘FP61’ Area
Detailed mapping of a very small area adjacent to the showing was conducted by Rio
Tinto in 1961 (scale 1”=50’) and subsequently by Norlode Resources in 1988 (scale
1”=20’). These maps are both available to MPH.
Geophysical surveys of unknown extent were reportedly carried out by Noranda (EM,
1957-58), Rio Tinto (IP, 1961) and Norlode (VLF-EM, 1988). No information about any
of these surveys is currently available to MPH.
The current vendors have prospected around the FP61 Island taking 3 grab samples
containing moderate copper (0.21 to 1.5%) and low gold (38 to 168 ppb) values.
4.3.
Drilling and Trenching
Trenching/stripping activities have been undertaken in the Shaft Area by the Property vendors in
1998 and 1999. Both drilling and trenching has been done at various times in the other two
areas, the ‘WG16’ and ‘FP61’ Areas.
Some old trenches and a diamond drill hole location were noted in this area by F. J.
Johnston while geological mapping in 1967-68 (Johnston, 1972). No information about
this work is currently available.
The vendors, I. J. Riives and A. Glatz, used a backhoe on August 28, 1998 to open up an
approximately 150 by 20 metre area adjacent to the old shaft. A portable power fire
pump was used to wash off the exposure prior to sampling. A total of 23 rock samples
including 11 grab samples, 6 approximately 2 metre chip samples, and 6 grab muck
samples from the shaft dump were collected at this time (Table 2). The grab sample
analyses reportedly ranged from 0.21 to 56.81g Au/t, the chip samples from 0.19 to
14.30g Au/t and the muck samples from 0.14 to 318.17g Au/t. Due to the absence of
analytical certificates this information cannot be verified by MPH.
4-3
TABLE 2: Drayton Gold Project-Vendor Samples, Shaft Area Trenches
General
Location
Trench # 1 (1999)
Trench # 2 (1999)
Shaft Location
Trench # 3 (1999)
Shaft Location
1998 Trench
Trench # 4 (1999)
Trench # 5 (1999)
Trench # 6 (1999)
Number
21084
21085
72812
27427
27439
27433
21059a
21059b
21060
27425
27426a
27426b
27428a
27428b
27429
27430
27431
27432
27434
5412
5413
5414
18831
18832
18836
18837
18838
18839
18840
18845
18846
18847
18848
18849
18850
18851
18852
18853
18854
18855
18856
18862
Sample
Type
Grab
Grab
Grab (VG)
Channel
Channel
Grab
Grab
Check
Chip
Chip
Chip
Check
Chip
Check
Channel
Chip
Chip
Chip
Grab
Grab
Muck
Grab
Muck
Muck
Grab
Grab
Grab
Grab
Grab
Grab
Grab
Chip
Chip
Grab
Chip
Grab
Chip
Chip
Chip
Muck
Muck
Muck
21061
21062
27440
27441
27442
Chip
Chip
Chip
Chip
Chip
Assay/Analysis
Length (m)
g Au/t
oz Au/T
1.47
0.043
12.96
0.38
11.18
0.33
5.0
0.99
0.029
1.5
0.13
0.004
tr
tr
11.69
0.34
11.45
0.33
1.0
2.54
0.074
2.3
1.06
0.031
6.38
0.19
0.6
0.6
6.17
0.18
1.0
9.94
0.29
12.17
0.36
1.0
2.5
0.11
0.003
2.5
0.33
0.010
2.3
0.61
0.018
2.5
0.18
0.005
0.21
0.006
4.90
0.14
85.17
2.48
13.89
0.41
1.06
0.031
0.14
0.004
1.37
0.040
0.52
0.015
56.81
1.66
0.72
0.021
0.23
0.007
5.86
0.17
1.50
0.044
2.0
0.93
0.027
2.0
14.30
0.42
0.21
0.006
2.0
0.19
0.006
0.21
0.006
2.1
1.30
0.038
6.31
0.18
2.0
2.0
2.02
0.059
10.94
0.32
13.51
0.39
318.17
9.28
No Bedrock
No Bedrock
1.0
tr
tr
1.0
0.279
0.01
1.0
tr
tr
1.0
0.257
0.01
1.0
tr
tr
Certificate
Available
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
no
yes
yes
yes
yes
yes
4-4
Using OPAP funding assistance, the vendors dug 6 additional backhoe trenches in the
area from September 30 to October 6, 1999, including 4 (Trenches # 1 to 4) along strike
from the shaft area, and 2 (Trenches # 5 and 6) on a VLF conductor approximately 150
metres to the south. All of the vendors samples analytical results are presented in Table 2
above. Analytical certificates for the 1999 work are available and have been examined
by MPH. Highlights of the 1999 trenching program are as follows:
• Trench #1: Located about 250 metres east of the shaft this trench uncovered a strike
area 83 metres long and up to 9 metres wide. The trenching revealed an area of
altered and sheared volcanic rocks with a few narrow conformable and cross cutting
quartz carbonate veins. Visible gold was seen locally in these veins. Five samples
including three grab and two sawn channel samples were taken. The grab samples,
including one with visible gold, ranged from 1.47 g Au/t to 12.96 g Au/t while the
best channel sample assayed 0.99 g Au/t.
• Trench #2: A cross cutting trench put in between Trench #1 and the shaft
encountered a 15 metre wide alteration zone that could not be sampled due to water
inflow. A single sample of unaltered rock from the north end of the trench contained
only trace amounts of gold.
• Trench #3: This trench extends the western part of the original 1998 trench further to
the west and north. Ten more samples were collected including two grab samples, 7
chip samples and 1 channel sample. The grab samples assayed 0.21 g Au/t and 11.69
g Au/t, the chip samples ranged from 0.18 to 12.17 g/t, and the channel sample
assayed 0.11 g/t over 2.5 metres.
• Trenches #4 and 5: Both trenches encountered deep overburden and did not reach
bedrock.
• Trench # 6: This trench was located on another structure 160 metres south of the
shaft. Sheared silicified and pyritized volcaniclastic rocks in this areas were tested by
5 one metre chip samples with gold values ranging from trace to 0.28 g Au/t.
A number of samples have been subsequently collected in this area by John Wakeford of
Optionor (5 grab samples) and the undersigned (1grab and 1 chip sample). These
samples all contained anomalous gold values ranging from 0.15 to 9.34 g Au/t. See
section 4.6 below for more details.
No modern drilling has been done in this area.
4.3.2 The ‘WG16’ Area:
R. J. McCombe of Sioux Lookout reportedly conducted trenching and limited x-ray
drilling in this area in 1948 (Johnston, 1972). No details of this work are currently
available.
Teck Exploration reportedly dug 6 trenches and drilled 9 BQ diamond drill holes totaling
1029 metres in 1992 (Janzen, 1992). A report summarizing the drilling and trenching
program, with detailed maps of the trenches, has been acquired by the Company,
although no drill logs or analytical certificates were available to MPH. A copy of an
4-5
earlier Teck trench map entitled ‘Main Trench’ dated August 1991 was also provided by
the Company indicating that additional work was done by Teck for which MPH currently
has no additional details.
Teck concluded that the drilling, trenching and other work conducted in 1991 and 1992
effectively tested the volcanic-sedimentary contact target area and indicated that the gold
mineralization there is sub-economic. Without having detailed information on this work
program, MPH is unable to comment on the validity of this conclusion.
This area was not visited by MPH due to high wind conditions on Lake Minnitaki.
4.3.3 The ‘FP61’ Area
Two diamond drilling and trenching programs have been completed in this area, the first
by Rio Tinto in 1961 and the second by Norlode Resources in 1988.
Rio Tinto drilled 5 holes totaling 1,659 feet (506m), inside an approximately 300 by 300
foot (90 x 90m) area, on or near Island FP61. A surface plan showing simplified
geology, two trenches and the drill hole surface projections is available as are the drill
hole logs albeit without analytical certificates. These holes were drilled in 5 different
directions including; north, southwesterly (2), northwest and northeast. Only two of the
holes, ‘scissor-holes’ drilled in opposite directions beneath the showing, encountered
significant mineralization including a 5 foot (1.52m) core length that assayed 0.22 oz
Au/T (7.54 g Au/t) and 0.25% Cu and a 44.5 foot (14 m) core length averaging 0.04 oz
Au/T (1.37 g Au/t) and 0.57% Cu both from DDH M-1. The other hole, DDH M-2
intersected 37.5 feet (11.4m) averaging 0.01 oz Au/T (0.34 g Au/t) and 0.28% Cu.
Norlode Resources drilled 7 additional holes inside the same small area in 1988. The
complete drilling database including analytical certificates is available for this program.
This time the holes were oriented in a different pattern including; vertical, northwest (2),
southeast (2), west and north-northeast. Three surface trenches but no sample sites are
shown on the surface plan. Only one hole, DDH 88-3, collared about 50 feet (15m) south
of the showing contained significant mineralization, a 70 foot (21.34m) core length
averaging 0.018 oz Au/T (0.62 g Au/t) and 0.47% Cu.
MPH visited the prospect in connection with this report and collected a relatively well
mineralized grab sample from the trench beside Minnitaki Lake (Trench #1 from the
Norlode surface plan). This sample assayed 1.18% cu and 0.55 g Au/t.
4.4.
Logging/Sampling Method and Approach
The Shaft Area trench exposures and outcrops have been examined and sampled by Property
vendors, John Wakeford of the Optionor; and finally by the undersigned in connection with this
report.
4-6
As indicated above there are key parts of the databases missing from the previous drilling and
trenching programs in the “WG16’ and ‘FP61’ Areas. In the absence of such items as detailed
logs, analytical certificates etc. MPH is unable to comment on logging/sampling method and
approach for these programs.
The Shaft Area trenches were completed by the property vendors primarily under the Ontario
Prospector Assistance Program (“OPAP”). While these have been extensively sampled they
have not been geologically mapped in detail or systematically channel sampled. Mostly grab,
several chip and a few channel samples have been collected from these trenches by the vendors
and a few others. The vendors’ samples have been previously been tabulated in section 4.3.1
above. All of the 1999 program samples were submitted to Swastika Laboratories Ltd. in
Swastika, Ontario for gold and other analyses.
John Wakeford of the Optionor collected 5 more grab samples from the area in June 2002.
These submitted to the ALS Chemex laboratory in Vancouver, British Columbia for gold
analysis.
Finally the undersigned collected 2 grab samples and 1 chip sample (across 5 metres) on
September 13 and 14, 2002 in connection with the present report. The sample sites were located
on property maps and by GPS. See Figure 5 above and Figure 6 for MPH sample locations. The
sample records are kept in duplicate in a field note book and a numbered sample book. Two
numbered tags were then placed inside the sample bags. These were submitted to the ALS
Chemex Laboratory in Mississauga, Ontario for gold and other analyses. Two separate crushed
material split analyses were requested for the chip sample.
4.5.
Sample Preparation, Analyses and Security
Sample preparation at the various laboratories was done according to standard industry practice
by crushing, splitting and pulverizing the core or rock samples to obtain pulps for assay and/or
geochemical analyses. Gold determinations were made for the most part using one assay ton
portion fire assays with atomic absorption finish (“FA+AA”). A rigorous series of in-laboratory
duplicate, reference and blank sample analyses were carried out. One MPH sample was tested
for 34 elements by aqua-regia acid digestion and conventional ICP-AES analysis.
MPH is unable to comment on sample security other than for those samples collected by the
undersigned. The 3 samples were taken by MPH from outcrop, and were continuously in the
possession of the undersigned from collection in the field until delivery to the laboratory. MPH
was given full and unrestricted access to the property, and project database.
4.6.
Data Verification
The gold showings on the Drayton Gold Property have been sampled by three unrelated parties
including the prospectors, the Optionor and MPH Consulting. In all instances there is general
agreement between the sample sets with individual samples being obtained by all the parties that
are anomalous to highly anomalous in gold content. The results of the sampling exercises by the
the Optionor and MPH are presented in Table 3 while the vendors’ samples were previously
4-7
Figure 6: Shaft Area Trench, Showing MPH Sample Locations. (Photo by J. Wakeford)
Shaft
Volcanics
G8419
Porphyry
G8418
Drayton Gold Property Rio Fortuna Exploration Corp.
4-8
presented in Table 2. Analytical certificates are currently available for all but the vendors’ 1998
samples.
Table 3: Verification Samples by the Optionor and MPH Consulting
General
Location
John Wakeford, Optionor
Shaft Area-Trench #1
Shaft Area-1998 Trench
Howard Coates, MPH
‘FP61’ Area
Number
Sample
Type
Length (m)
Assay
Grams Au/t
Analysis
Cu %
499488
499489
499490
499491
499492
Grab
Muck
Grab
Grab
Grab
-
4.16
7.46
8.30
9.34
1.04
-
G8418A
G8418B
G8419
G8423
Chip
Chip
Grab
Grab
5.0
5.0
-
0.15
0.21
5.84
0.55
1.18
The single sample (G-8418) tested by MPH for 34 elements by aqua-regia acid digestion and
conventional ICP-AES analysis returned no significant values for silver or toxic elements such as
As or Hg.
MPH has verified the existence of most aspects of the recent and early programs at the Shaft
Area and the ‘FP61’ Area. In the Shaft Area the old shaft collar, muck dump, parts of the
flagged grid, and the 1998 and 1999 trenches were inspected. In the ‘FP61’ Area the old
trenches and several old drill collar locations were observed. As noted above the ‘WG16’ Area
was not visited.
4.7.
Underground Workings
The old workings in the Shaft Area are currently flooded and inaccessible. There are no known
records of the historic work available.
No reports of gold resources or reserves have been found by MPH.
Exploration Potential
4.8.
The systematic exploration work completed to date on the Drayton Gold Property has been
confined to the ‘WG16’ Area and to the immediate area of the ‘FP61’ Showing. The Shaft Area
gold bearing zones, some substantial distance away from the above areas, have been found to
contain significant gold values in quartz veins and also in altered host rocks. All of the gold
showings also occur in association with extensive alteration phenomena that may be associated
with substantial gold deposits. The target area of immediate interest is the Shaft Area where no
modern systematic exploration has been conducted, while the information viewed to date by
MPH from the ‘WG16’ area does not eliminate it as high potential target area.
4-9
To date there are no known records of modern multidisciplinary exploration work in the Shaft
Area. Even the showings unearthed by the vendors could be further opened up and more
systematically sampled by more rigorous channel rather than chip and grab sampling. It is
therefore apparent that the Drayton Gold Project has significant untested exploration potential
that may be readily evaluated by as yet untried modern methods. The favorable location of the
property vis a vis accessibility and exploration expertise should allow such work to be completed
inexpensively by Canadian standards. MPH ranks this as a high priority target.
The ‘WG16’ Area is intriguing because of its structural setting and widespread gold
mineralization. However the full extent of previous modern exploration does not appear to be
known to the Company at present. The Company should attempt to acquire the full Teck
database and reassess the target area in the light of more complete knowledge.
The ‘FP61’ Area target has not been tested to any degree away from the showing area. The
mineralization indicated so far is low grade so only a large-tonnage open-pit situation would be
of potential commercial interest. Even if this situation were present, the physiographic location
in a major drainage system would likely preclude development. MPH ranks this as a low priority
target.
5-1
5.0 CONCLUSIONS AND RECOMMENDATIONS
MPH concludes that the Drayton Gold Property of the Company represents a good opportunity to
explore for gold in an area containing several known showings. At least one of the three main
showings and the intervening areas between them have not been explored by state of the art
methods. It is concluded that the application of such methods is fully warranted and justified.
A two phase program for exploration of the property by means of geological mapping,
prospecting, geophysics, trenching and drilling is recommended. The first phase is designed to
establish specific targets for drilling and mechanized trenching with an allowance for a limited
amount of trenching, while the second is a provisional phase to adequately test such targets by
diamond drilling and/or trenching.
The initial phase 1 work will be a compilation of previous exploration completed on or near the
claim group. This will include a detailed compilation of previous work throughout the property,
especially that done by Teck Exploration in the early 1990’s in the ‘WG16’ Area. A grid will be
established for control and to tie in the trench areas at the Shaft Area. The grid will cover the
northeastern half of the claim group and should tie into the Teck grid if possible and practical.
Magnetics will be completed on the entire new grid and IP will be completed on selected lines in
the Shaft Area to determine if IP or resistivity features associated with the gold mineralization
can be detected. The claim group geology will be mapped utilizing the grid. The trenches and
showings will be mapped and sampled systematically where needed. It is anticipated that a minor
amount of trenching and sampling will need to be completed to firm up drill targets.
Work program for first phase of target definition as follows:
• Grid covering the Shaft Area and its southwest extension at 100m line spacing, total 30
km with baselines.
• Magnetics on all gridlines
• IP over showing areas, 10 x 1 km lines
• Geological mapping of existing trenching and grid mapping.
• Prospecting in areas between showings
• Sampling of existing showing areas, estimated 150 samples
• Research and compilation of the property with emphasis on the WG16 area
• Reports and recommendations for next Phase including drill targets.
• Contingency will likely be allocated to new trenching and stripping and/or saw channel
sampling of stripped areas
DRAYTON GOLD PROJECT
Property
Grids
Magnetics
IP
Power Strip
Drilling
Total cost
$9000
4500
8000
5000
0
5-2
Field equipment
Compilation
Sampling assays
Field tech
Field geologist
Senior Geologist
Accommodation
Transport and Comm
Drafting
Demob
Contingencies
5400
8000
5250
3300
6600
4000
5400
4050
5000
4000
6500
Subtotal
Management
84000
8400
TOTALS
Say
92400
$92,000
The second phase is conditional upon a successful first phase. However it is considered
reasonable to make provision for some ongoing work such as additional IP, trenching and a
limited diamond drilling program to test the known mineralized areas and possible geophysical
targets. An unallocated amount of approximately $300,000 is recommended for this purpose.
The grand total required to adequately complete the two phase exploration program on the
Drayton Gold Property is approximately $392,000.
Respectfully Submitted,
MPH CONSULTING LIMITED
(Signed H.J. Coates)
Howard J. Coates, M.Sc., P. Geo.
Vice President, MPH Consulting Limited
October 8, 2002
5-3
REFERENCES
Andrews, A. J., Hugon, H., Durocher, M., Corfu, F and Lavigne, M.J., 1986. The Anatomy of a
Gold-Bearing Greenstone Belt: Red Lake, Northwestern Ontario, Canada, in Macdonald, A. J.
ed., Proceedings of Gold ’86, an International Symposium on the Geology of Gold: Toronto,
1986, pp. 3-22.
Canadian Mines Handbook- 1988-89. P. 87.
Card, K. D., and Ciesielski, A., 1986. DNAG No. 1. Subdivisions of the Superior Province of
the Canadian Shield; Geoscience Canada, Vol. 13, pp. 5-13.
Chorlton, L. B., 1987. Stratigraphy, Structural Development and Auriferous Mineralization in
the Cross Echo-Troutfly Lake Area, Northern Wabigoon Greenstone Belt, Northwestern Ontario:
pp. 72-83 in Summary of Field Work and Other Activities 1987, Ontario Geological Survey,
Miscellaneous Paper 137.
Dowhaluk, H., 1988. Drayton Township (Northeast) Project for Norlode Resources Inc.
Unpublished company report.
Ferguson, S. A., Groen, H. A., and Haynes, R., 1971. Gold Deposits of Ontario: Part I, Districts
of Algoma, Cochrane, Kenora, Rainy River and Thunder Bay; Ontario Division of Mines,
MRC13, 315p. (reprinted 1982).
Franklin, J. M., and Schnieders, B. R., 1990. Mineral Resources of the Western Superior
Province, Ontario: pp. 1-6 in Geological Survey of Canada, Open File 2164.
Hood, W. C., 1990. Report on Alcona-Split Lake Property for Cream Silver Mines Ltd.
Hood, W. C., 1991. Report on Geological Mapping and Drilling at the Alcona-Split Lake
Property, Sioux Lookout Area, Northwestern Ontario for Valerie Gold Resources Ltd.
Janzen, J., 1992. Report on 1992 Exploration Program, Minnitaki Property, Teck Exploration
Ltd. Report-0131. Unpublished company report.
Johnston, F. J., 1972. Geology of the Vermillion-Abram Lakes Area, District of Kenora, Ontario
Division of Mines, Geological Report 101.
Melling, D. R., Watkinson, D. H., Poulson, K. H., Chorlton, L. B., and Hunter, A. D., 1986. The
Cameron Lake Gold Deposit, Northwestern Ontario, Canada: Geological Setting, Structure and
Alteration, in Macdonald, A. J. ed., Proceedings of Gold ’86, an International Symposium on the
Geology of Gold: Toronto, 1986, pp. 3-22.
5-4
ODM, 1937. Superior Junction-Sturgeon Lake Area.
Vol.ILVI, Part VI, 1937.
Forty-sixth Annual Report ODM,
Speed, A. A., 1980. Wright-Hargreaves Mines Limited (McCombe Group) Occurrence.
Unpublished ODM site visit report.
Riives, I. J., 2000. OPAP 99-396 Final report, Project #1, Drayton Twp Gold Prospect.
Turner, C. C., and Walker, R. G., 1973. Sedimentology, Stratigraphy, and Crustal Evolution of
the Archean Greenstone Belt near Sioux Lookout, Ontario. Can. J. Earth Sci., Vol. 10, pp 817845.
Wakeford, J., 2002. Drayton Gold Property, Zarn Lake Area, Patricia Mining Division, Ontario
for 1541386 Ontario Inc. Unpublished company report.
5-5
CERTIFICATE OF QUALIFICATION
I, H. J. Coates, of Mississauga, Ontario do hereby certify that:
1. I am a consulting geologist with an office at 615–133 Richmond Street West, Toronto,
Ontario, Canada.
2. I am a graduate of Memorial University of Newfoundland in St. John’s, Newfoundland and
hold a degree of Master of Science in Geology.
3. I am a member in good standing of the Association of Professional Engineers and
Geoscientists of the Province of Newfoundland, as a Professional Geoscientist, Membership
No. 03766.
4. I have practiced my profession continuously for a period of 32 years including substantial
work on gold projects in the Superior Province, other parts of Canada and several overseas
countries.
5. I have personally undertaken and/or assisted in the preparation of many independent
technical reports for other clients in the past.
6. I have read National Instrument 43-101, Form 43-101F1 and Companion Policy 43-101CP
and this report has been prepared in compliance with same.
7. As a result of my education, professional experience and professional qualifications, I am a
Qualified Person as defined in NI 43-101
8. I have no present or anticipated interest, either directly or indirectly in the Drayton Gold
Project or securities of 1179785 Ontario Ltd., Rio Fortuna Exploration Corp., or any related
companies.
9. The statements made in this report are based on data made available to MPH Consulting
Limited from Rio Fortuna Exploration Corp.’s files. The information is to the best of my
knowledge correct, complete and not misleading. A site visit was made by the undersigned
on September 13 and 14, 2002.
10. I consent to the use of this report dated October 8, 2002 for regulatory filing purposes of the
company.
Mississauga, Ontario
October 8, 2002
(Signed H.J. Coates)
Howard J. Coates, M.Sc., P. Geo.

Technical Report October 2002

Transcription

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