Outokumpu Mines Ltd.

Diamond Drilling Reporton the

Shaw Property

^ .^ o

RECEIVED

JUN E 3 1997

MINING LANDS BRANCH

42A06NE0120 2 17423 SHAW 010

Niels HendrikxOutokumpu Mines Ltd.

February. 1997

1.0 Introduction

2.0 Location, Access, and Topography

3.0 Property

4.0 Regional Geology

5.0 Property Geology

6.0 Diamond Drilling

7.0 Results and Conclusions

8.0 Recommendations

Table of Contents

Page No.

4

4

4

5

5

5

5

5

List of Figures

1. Property Location Map

2. Claims Location Map

3. Regional Geology Map

Page No.

6

7

8

List of Tables

1. Property Holdings

2. Diamond Drill Hole Depths and Dips

Page No.

4

42A06NE0120 2.17423 SHAW 010C

Appendices

Appendix 1. Diamond Drill Hole Logs

Appendix 2. Grid Map, Diamond Drill Hole Plan Map, and Diamond Drill Hole Sections

1.0 Introduction

Bradley Brothers Limited was contracted by Outokumpu Mines Limited to drill 2 diamond drill holes on the Shaw property located in Shaw and Carman Townships, Porcupine Mining Division, District of Cochrane, Ontario. Canada. The property comprises 71 contiguous, unpatcnted mining claims.

A total of 229 metres of BQ diamond drilling was completed in 2 diamond drill holes from 18 to 20 November 1996. All core was logged by Outokumpu personnel at the Outokumpu Mines Limited Office in Timmins, Ontario. Copies of both logs arc included as Appendix l of this report.

The objective of this program was to test the subsurface stratigraphy of the property. Coincident high magnetic anomalies and electromagnetic conductors were targeted within this drilling program.

2.0 Location, A ccess, a nd Topography

The Shaw property is located in Shaw (G-3999) and Carman (G-4000) Townships, District of Cochrane, Porcupine Mining Division, Ontario, Canada. The property is located along the Redstone river approximately 16 kilometres south-southeast of the City of Timmins. The property is located between lots one and five of concessions 2 and 5 of Shaw Township and in the extreme west central portion of Carman township just south of the Redstone river (fig. l).

The property is accessed by an all-weather bush road which intersects Stringer's road on the northwestern bank of the Redstone river. The grid on which the two holes were drilled intersects the all weather bush road.

The area in which the holes were drilled is of relatively low relief. The southern end of the grid area is relatively sandy. The northern section of the grid area is dominated by muskeg swamp broken by a few small outcrop ridges. Outcrop exposure in the grid area is approximately 5 percent and is limited to the areas dominated by the outcrop ridges. Vegetation in the area is dominated by poplar and black spruce with occasional cedar trees.

3.0 Property

The Shaw property consists of 71 contiguous unpatented mining claims consisting of 68 units in Shaw Township and 3 units in Carman Township (please see table l and figure 2). All mining claims are 100 percent owned by Outokumpu Mines Limited.

Claim Number11989951206820120682112068221206823120682412068251206826120682712068281206829

TownshipShawShawShawShawShawShawShawShawShawShaw

Carman

No. of Units613122481

12643

Ownership1 00Q7o Outokumpu1 00 07o Outokumpu1 OOYo OutokumpulOO^o Outokumpu1 00 070 Outokumpu1 00"7o Outokumpu10007o Outokumpu1 0007o Outokumpu1 Of)0 o Outokumpu100"7o Outokumpu1 00'!o Outokumpu

Table 1. Outokumpu Mines Ltd. Property Holdings - Shaw Property

4.0 Regional Geology

The Shaw property is located in the southwestern portion of the Abitibi greenstone belt (fig. 3). The Abitibi greenstone belt is characterised by east-west trending metasedimcntary rocks and metavolcanic rocks that have been intruded by a series of felsic to intermediate plutons and diabase dykes.

The area south of the Dcstor-Porcupine fault in the Timmins camp comprises a series of calc-alkalic mafic to felsic volcanic rocks overlain by a series of thick sulphide and oxide facies iron formations. These in turn are overlain by komatiitic dunites to basalts which are intercalated with minor amounts of tholeiitic volcanics. These rocks arc capped by a thick sequence of komatiitic basalts and tholeiitic mafic to intermediate volcanics. The entire sequence has been intruded by numerous granitic and granodioritic intrusions, tholeiitic dykes and sills, and several generations of diabase dykes.

5.0 Property Geology

The geology of the Shaw property is typical of the northern flank of the Shaw Dome. A succession of calc-alkalic intermediate volcanic rocks is overlain by sporadic oxide and sulphide facies iron formations. These in turn are overlain by a series of komatiitic dunites, pcridotites, pyroxenites, and basalts. The intermediate volcanic suite of rocks is represented by pillowed andesites, topping in a north-northeasterly direction. Dips are moderately steep (55 to 70 degrees) as indicated by core angles. Iron formations in the area are all of the oxide type, and fairly thin. The rocks have been cut by several episodes of brittle faulting which has offset much of the iron formation stratigraphy. The overlying komatiitic rocks were not encountered in this drill program. No nickel mineralisation has been discovered on the Shaw property to date.

6.0 Diamond Drilling

Two diamond drill holes were completed for a total of 229 metres of BQ core (please see table 2). The diamond drill core was picked up daily from the drill and transported to the Outokumpu Mines Limited office in Timmins, Ontario. The core was then logged and sampled by Outokumpu personnel. Complete diamond drill logs of both holes arc included as Appendix l of this report. A plan map and sections of the holes arc included as Appendix 2 of this report.

Hole NumberSW-1-96 SW-2-96

Total Depth110m 119m

Dip-45"

-45 0

Table 2 Diamond Drill Hole Depths and Dips - Shaw Property

7.0 Results and Conclusions

From previous geophysical analyses of the grid on the Shaw property, two promising targets were

identified. Unfortunately, these geophysical targets did not prove to be mineralised komatiitic rocks. Rather, oxide facies iron formations were the cause of the geophysical anomalies.

8.0 Recommendations

It is recommended that no further work be done in this area of the Shaw property

Figure 1. Location Map: Shaw Property

Mountjoy Township Tisdale Township

of Timmins Whitney Township

Cody Township

Shaw Township

Deloro Township

Ogden Township Carman Township

Price Township Eldorado Township

Adams Township Langmuir Township

McArthur Township

Fripp Township Douglas Township

Bartlett Township 10km

Musgrove Township Geikie Township

Beemer Township Zavitz Township

English Township

Sha

w T

owns

hip

Car

man

Tow

nshi

p

CQ

C

I

CD

N)

m C/)

O

TD CD O 5?

3" C/

) S3

o o

Legend

Proterozoic Sediments

Felsic to Intermediate Intrusions

Ci Mafic Intrusions

Sediments

Mafic to Felsic Volcanics

Ontario Quebec

1 Shaw Dome2 Bartlett Dome3 Halliday Dome4 Shining Tree5 Swayze North6 Swayze South7 Destor-Porcupine

Fault Trend8 Mann Trend9 Kidd-Munro Trend10 Roquemaure Trend11 La Sarre Township12 Dumont Area13 La Motte Dome14 Pontiac Belt15 Round Lake Dome

DPFZ: Destor PorcupineFault Zone

CKLFZ: CadiHac-Kirkland Lake Fault Zone

G: Gogama T: Timmins C: Cochrane KL: Kirkland Lake R-N: Rouyn-Noranda V: Vald'Or S: Senneterre NL: New Liskeard

i \

Figure 3: Regional geological map showing the distribution of komatiitic successions in the Abitibi greenstone

belt (1-13) and the adjacent Pontiac metasedimentary belt (14) (modified from Goodwin and Ridler 1970; MERQ-

OGS 1983; and Heather 1993).

Appendix lDiamond Drill Hole Logs

Outokumpu Mines Limited Diamond Drill Hole Record

Area/TownshipShaw

N.T.S.

42A/SW

Year1996

ProjectExploration

PropertyShaw

Claim Numbers1198995

Hole NumberSW-1-96

Survey TypeAcid

Dip (Deg.)-45

Azim Grid (Deg.)

north

Azim Astro. (Deg.)

250

Hole Length (m)110

Core SizeBQ

Northing (Grid m)

3600

Easting (Grid m)6160

Northing (UTM) Easting (UTM) Northing (Lat.) Easting (Long.) Elevation (m)

295

Logged ByNH

Date LoggedNov 20/96

Drilled By

Bradley Bros.Date Started

Nov 19/96Date Finished

Nov 20/96Core Storage

Hollinger Building

Casing Depth (m)

4

Casing Pulled (Y/N)

N

Cemented (Y/N)

N

Geophysics (Y/N)

N

Down Hole Geophysics (Type and Contractor)

Assay Numbers

103759-103761

Assay LabBondar-Clegg

Certificate # Whole Rock Geochemistry

Comments:

^fa^f/tV^X*'

Page 1

Sheet2

Hole Number

SW-1-96SW-1-96SW-1-96

Survey Type

AcidAcidAcid

Depth(m)5

56110

Dip

(Degrees)i -43.5

-46.5i -48.5

Azimuth(Degrees)

250250250

Page 2

Outokumpu Mines Limited Diamond Drill Hole Log Hole#SW-1-96

From (m)000

4.00

9 56

11 50

18.49

656?

-------

To (m)400

956

11.50

1849

65.67

69 06

--- —-

Rock TypeCasing

Andesite

Andesite

Andesite

Antiesite

Oxide Iron Formation

-~- ------

— ---- -- -

LegendCasing

Ad

Ad

Ad

Ad

BIF

•— — -

Description

-medium grey, f.g., phenocrysts of carb, homogenious, massive, medium hardness, non-magnetic -trace Py in very small masses -small qtz veinlet at 5.45 m chlorite altered

-calc-alkalic andesite -eyes of calcite, here and there

-As above, darker cdldur, f g., massive, non-magnetic-calc-alkalic-less Py than above-upper contact at 28 degrees to core axis-gradational lower contact

-Same as from 4.0-9.56 m-lighter grey/green, f.g.. weakly foliated -foliation at 57 degrees to the core axis -softer unit due to more intense carbonate development -qtz veinlet at lower contact-disseminated Py -gradational upper contact, lower contact at 25 degreesto the core axis

-medium to light grey-green, f g. to m. g., weakfy foliated-foliation at 70 degrees to the core axis-chlorite and carbonate alteration -trace disseminated Py -qtz veins at 38. 40-38. 46m and 45.26-45. 30m -lower contact marked by calcite blebs, possible chill zone

-greenish to black, aphanitic to f.g., strongly magnetic -magnetite veins up to 3 cm thick-flame structures in BIF indicate soft sediment deformation-silica beds up to 10 cm thick -core angles range from 80 to 88 degress fo the core axis-minor graphite disseminated throughout-disseminated and blebby sulphides throughout-trace chalcopyrite m small disseminations

^....... ...... ...............- ........,............. ——— ........ .

Sulp"/o

tr

tr

tr

--

tr

tr-2

-—

tides Vo Frags

-- — --

Type

Py

Py

" Py"

-

Py

Py,Po,

Cpy

-

Mode

a

d

d

d

d. b

-- --- ---

--— -

Sampi Type

-—

AS

AS

AS

~-—~

---

esTag*

—

---- - ——

103759

103760

103761

...

From (m)

———— --

-•----•" —— ——

65.67

66.68

66.96

— -— ——

-- -- ———

To (m)

6668

66.96

69.66

--

-— ---

Faults ar Brittle

-

--.—

d Shears Ductile

(1-10) From (m) To (m)

Page 1

Outokumpu Mines Limited Diamond Drill Hole Log Hole#SW-1-96

From fm)69,66

To (m)11000

ECU

- - - -.

- —— -— -

Rock TypeAndesite

--••-- -— -

••---- - —

- - -— -

.-.— -----— -

- ---— -— —

LegendAd

— — --

.

Description-similar to andesites uphole -medium grey-green. f.g.. massive to weakly foliated -foliation at 65 degrees to the core axis -occassional qtz vemlets at 20 degrees to the core axis -epidote vemlets scattered throughout unit

End Of Hole

- - ——— ..—.- —————— .. ———————————————— -—

— - -— -—— - —— -- ——— .-..—— -. - ——— --- - —

- -- - -- — - -- - - - --

-' - - ' ' ' - --

-- --- -

— --- - -- --— -- - —

- -- -- - -- -—— -- -- - --

Sulp"k

1:— -

-—

---

ikies "h Frags

.

---

Type

----

••-

Mode

. .. - ..

—— --— --

--- -- -

Sampl Type

- -

........

esTag*

— -- -- —

From (m)

- ——— ...-

——————

- -- -- -

- --- -- --

To (m)

- - - -

Faults ar Brittle

— ---

----

-- —— -

d Shears Ductile

(1-10) From (m) To (m)

Page 2

Sheets

Assay Analysis Tag # i From (m) 103759 : 65. 67^ 103760; 66.68; 103761* 66.96

To (m) Cu(07o) ' Ni(0Xo) Co (0Xo) ; Fe(07o)

66.68 ' i 66.96 69.66' '

S (0A) Spec. Grav.

Page 4

Outokumpu Mines Limited Diamond Drill Hole Record

Area/Township

Shaw

N.T.S.

42A/SW

Year

1996

ProjectExploration

PropertyShaw

Claim Numbers1198995

Hole NumberSW-2-96

Survey TypeAcid

Dip (Deg.)-45

Azim Grid (Deg.)north

Azim Astro. (Deg.)250

Hole Length (m)119

Core SizeBQ

Northing (Grid m)3100

Easting (Grid m)5880

Northing (UTM) Easting (UTM) Northing (Lat.) Easting (Long.) Elevation (m)295

Logged ByNH ^

Date LoggedNov 22/96

Drilled By

Bradley Bros.

Date Started

Nov 18/96

Date Finished

Nov 1 9/96

Core StorageHollinger Building

Casing Depth (m)22

Casing Pulled (Y/N)N

Cemented (Y/N)N

Geophysics (Y/N)N ^j

Down Hole Geophysics (Type and Contractor)

Assay Numbers103762-103776

Assay LabBondar-Clegg

Certificate # Whole Rock Geochemistry

Comments:

rf,ud- -^fl^U&f

Page 1

Sheet2

Hole Number

SW-2-96SW-2-96SW-2-96

Survey Type \

AcidAcidAcid :

Depth(m)2274119

Dip(Degrees)

-46-46.5-49

Azimuth(Degrees)

250250250

Page 2

Outokumpu Mines Limited Diamond Drill Hole Log Hole#SW-2-96

From (m)000

2200

5629

56.97

5782

5825

58.41

5896

60.25

60.54

61 85

61 91

To (m)2200

5629

5697

57.82

58.25

5841

58.96

60.25

6054

61.85

61.91

61 96

Rock Type

Casing

Andesite

Oxide Iron

Formation

Andesite

Oxide IronFormation

Andesite

Oxide Iron Formation

Andesite

Oxide IronFormation

Andesite

Oxide Iron

Formation

Andesite

Legend

Casing

Ad

BIF

Ad

BIF

Ad

BIF

Ad

BIF

Ad

BIF

Ad

Description

-medium grey-green, f. g to m. g., weakly foliated, amygdaloidal, non-magnetic, highly weatherd and soft -foliation at 65 degrees to the core axis -chlorite, epidote, and carb alteration pig, epidote, carbonate, chlorite, and quaru

-some amydgules filled with carb-trace disseminated cubic Py near basal contact-minor epidote veinlet development-lower contact sharp-possible pillow selveges

-massive magnetite and chert beds upto 3 cm thick -brecciation on small scale in chert bands -Py cubes and small masses up to 3 mm in size -core angles at 57 to 63 degrees to the core axis -some very thin graphite bands (2-5 mm)

-dark greenish-grey, f.g.. quite soft -strong chlorite alteration -Py band near lower contact at 57 75-57 77 m

-same as BIF above with thicker magnetite beds upto 5 cm-core angies range from 25 to 30 degrees to core axis

-as above (56.97-57.82 m)

-as above (57.82-58.25 m)

-as above (56.97-57.82 m)

-as above (57.82-58.25 M), thin bands of chert andmagnetite (mm scale to 2 cm)-brecciated top, trace cubic Py in fine masses

-as above (56.97-57.82 m)

-thin beds of magnetite and chert-Py cubes up to 5 mm represent approximately 4 0̂

-very thin band of andesite as above (56.97-57.82 m) -possibly a clast caught up m the overlying BIF

Sulp"/o

'V

tr

tr

tr

tr

tr

3-5

ildes "/o Frags

- --

. -

Type

Py

~~Py"~

.~Py..

PV

"~p77

Py- —

Py

Mode

d

d

d

d

d

d

d

Sampi Type

— - - -

AS

AS

AS

— -

AS

AS

as

Tag*

-

103762

103763

103764

103765

- - ' -

103766

From (m)

56,29

57.82

58.41

- - -

60.25

61.85

To (m)

— - --

56.97

58.25

58.96

60.54

62.29

Faults ar Brittle

-•••--

d Shears Ductile

---

-

— --

(1-10) From (m)

--- ----

--- -

To (m)

- ---- -

--- --

Page 1

Outokun alines Limited Diamond Hole Log Hoi- W-2-96

From (m)61.96

62.29

64 52

6564

66.03

6684

70.40

72.50

77.49

77.69

78.00

To (m)62.29

64.52

6564

6603

66.84

7040

'2.50

77,49

77.69

7800

8551

Rock TypeOxide Iron Formation

Andesite

Oxide Iron

Formation

Andesite

Oxide Iron

Formation

Andesite

Oxide Iron

Formation

Andesite

--

Oxide IronFormation

Andesite

Oxide Iron

Formation

Legend

BIF

Ad

BIF

Ad

BIF

Ad

BIF

Ad

BIF

Ad

BIF

- - - - -

Description-as above -core angles range from 35 to 40 degrees to core axis -brecciated chert beds-massive magnetite beds up to 5 mm thick -trace v.f g. Py disseminated throughout

-as above (56.97-57.82 m)-some weathered Py cubes (1-2 mm)

-as above -bands of jasper up to 2 cm thick-F*y cubes up to 2 mm concentrated near lower contact

-as above (56.97-57.82 m)

-as above (61. 96- 62.29 m)

-as above (56.97-57.82 m)-rock is softer near upper and lower contacts-Py cubes weathered out between 68 50-68.60 m -brecciateo upper contact -weakly foliated at 60 degrees to the core axis

-as above -minor jasper bands -core angles a! 70 degrees to the core axis-Py cubes up to 5 mm -brecciated lower contact

-darker than other andesites-possible pillow selveges-foliated at 35 degrees to the core axis-Py cubes throughout -2 cm qt2 veins at 72.75 m at 30 degrees to core axis

-as above, highly weathered and silicified

-as above (56.97-57, 82 m)

alternating bands of magnetite and chert from 5 mm to2 cm thick, bands of jasper up to 1 cm widetrace dis Py throughout as cubes and stringers

Sulp'/,

tr

tr

tr

tr

tr

tr

tr

hides "/c, Frags

— — —

--..-

-- -- —

— -— -

Type..Py.

~~py""

PV

Py

~py"

Py

~Py

"p7 "

————

...py...

— --

Moded

d

d

d

d

d

d

d

... .

d

--•- - —

Sampl Type

-•--

AS

---

AS

AS

AS

AS

AS

AS

es Tag*

103767

103768

103769

103770

-- -- -— - -

103771

103772

103773

From (m)

64 52

66.03

— -- -

7040

-

77.49

—— . ——— .

78.00

80.00

83.00

To (m)

65.64

66.84

72.50

7769

80.00

83.00

85.51

Faults ar Brittle

- -- --

d Shears Ductile

-. .- .

(1-10) From (m)

- -- -

- - -

--

- - - --

To (m)

~ — - -

Page 2

Outokun dines Limited Diamond Hole Log Hoi W-2-96

From {m}85.51

8643

8662

111 96

11239

112.71

11289

119.00

To (m)

8643

86.62

1 1 1 .96

11239

11271

11289

11900

- --— -

- -----

Rock TypeAndesite

Oxide Iron.

Formation

Andesite

Oxide Iron

Formation

Andesite

Oxide Iron

Formation

Andesite

END OF HOLE

•-----

-- - -- - -

LegendAd

BIF

Ad

BIF

Ad

BIF

Ad

- - -

Description

-as above but bleached to a lighter green

-blebs of carbonate

-very weakly foliated at 70 degrees to the core axis

-as above -not as strongly magnetic

-as above (22.0-56.29 m)

-pillow selveges throughout

-qtzvein at 20 degrees to core axis at 100. 40- 100.88 m•qtzvein at 1 5 degrees to core axis at 101.11-101 22 m-trace v f. g. Py throughout-foliated near basal contact at 50 degrees to core axis

-magnetite and chert bands are not as distinct as other units, lasper-hch iron formation, beds are possibly folded -trace Py throughout as cubes up to 2 mm

-as above (56.97-57.82 m)

-as above but no jasper bands -indistinct banding

-highly weathered, f.g. to m. g,, amygduioidal -foliation at 55 degrees to the core axis -sheared calcite and carbonate filled amygdules -brecciated at 113 m-becomes finer grained downhole

Sulp"/o

tr

tr

tr

tr

hides "A Frags

-- - -—

--

Type

~Py "

, py

Py

Py

-..-.-

Mode

d

d

d

d

-— -- —

Sampl Type

AS

AS

AS

•— —

————

es Tag*

................-

103774

103775

103776

From (m)

—,. .... ..

86.43

111 96

112.71

To (m)

.......

86.62

112,39

112.89

Faults ar Brittle

- - -

1-.::

d Shears Ductile

--

-— --

•'"'

(1-10) From (m) To (m)

Page3

Sheets

Assay AnalysisTag*1037621 03763 :103764:103765;103766103767103768;"103769'

103770103771'103772:T03773;103774 \1037751037761

From (m)56.2957.8258.4160.2561.8564.5266.03;

70.4;77.49'

78 !80:83!

86.43]111.96]112.71:

To (m) Cu (07o) ! Ni ("/o) Co (7o) Fe ("/o) S ( 07o) Spec. Grav.56.97' i :58.25 : :58796 i ' ; ' '60.54 : 'i62.29 * ; i :65.64 ] l ; '66.84 i i " ' j | i

72.5 : ' " i ; :77.69' ' l \ : . '"""80: ' i i f " ' !

"83; : ; ; ; '85.51; i ; : l :86.621 : ] : i ;

-- ——— - 4- - - i -| - - t j112.39) i i ; !112.891 j j i j j

Page 4

Appendix 2Diamond Drill Hole Plan Map

and Diamond Drill Hole Sections

Ministry ofNorthern Developmentand Mines

Ontario

Report of Work Conducted After Recording Claim

Mining Act

Transaction Number

Personal information collec this collection should be d Sudbury, Ontario, P3E 6A!

Instructions:

in will be used for correspondence. Questions about pment and Mines, Fourth Floor, 159 Cedar Street,

42A06NE0120 2 17423 SHAW 900 lrR-wo

- Plea- Refe

Recorder.- A separate copy of this form must be completed for each Work Group.- Technical reports and maps must accompany this form in duplicate.- A sketch, showing the claims the work is assigned to, must accompany this form.

e Mining

Recorded Holder(s) Client No.

Address ' Telephone No.

r.O. &OX //22, T~!e^f^,'AS , 0t~k- fly/V ~7/^ C /W) 26f --T"2y

Mining Division Township/Area M or G Plan No.

Dates Work From: .i/.,,, To: A i . .. . - Performed |vov IfrnV IvtulO/^^

Work Performed (Check One Work Group Only)Work Group

Geotechnical Survey

Physical Work, Including Drilling

Rehabilitation

Other Authorized Work

Assays

Assignment from Reserve

Type

0* ̂ ̂ gt ;ii;^

t

TntaJ Assfis-srnnnt Wnrk Claimed nn the Attached Statement of Costs $ / 3, iy3

Note: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded

holder cannot verify expenditures claimed in the statement of costs within 30 days of a request for verification.

Persons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)

Name

^ *™. f .

P 1 0--, o***k*~,~ A-W ^.

Address

14,-JL^ l*/, A--.W, M .

f-o . tj* Hi) ft** ~.'*j 0~l. P Y" ~7Mf

(attach a schedule if necessary)

Certification of Beneficial Interest * See Note No. 1 on reverse side

l certify that at the time the work was performed, the claims covered In this work report were recorded in the current holder's name or held under a beneficial interest by the current recorded holder.

Date

RECEIVED

JUN 2, 3 1997

MINING LANDS RoV(r .

Recorded Holder or Agent (Signature)

Certification of Work Report1 certify that 1 have a personal knowledge of the facts set forth in this Work report, having performed the work or witnessed same during and/or after 1

its completion and annexed report is true.Name and Address of Person Certifying

Telepone No. Date

C7os~)~ic y --ft) 'z y v**-*- fo /f

For Office Use OnlyTotal Value Cr. Recorded

\^-Date Recorded

Deemed Approval Da e

fOM 3fy ^1

././hj.r.v-*-,^., ftr*t#tCertified By (Signature)

7 AJ

Mining Recorder

Date Approved

Date Notice for Amendments Sent

Hi ifivn!?(?3T^'^?ir* (iFftFEB 26 1997 ^

x r ^

70RCUFINE V.lrllfJG DIVISION

Sheetl

Work ReportNumber

ClaimNumber11989951206820120682112068241206826

i 21

Numberof Units

61312812

Value ofAssessment

133430000

13343

ValueApplied

0520048003200143

13343

ValueAssigned

133430000

13343

ReserveWork

00000

0

2.17423

RECEIVED

JUN 2 3 1997

LANDS BRANCH

Pagel

" -E^ 26 1997

2/r-io^ (c) ^ PORCUFl. i.: L,*!WG DIVISION

ntario

Ministry olNorthern Developmentand Mines

Ministers du Develop'pernent du Nord e! des mines

Statement of Costs for Assessment Credit

Etat des couts aux fins du credit devaluation

Mining Act/Loi sur les mines

Transaction No./N" de transaction

2.17423srsonal information collected on this form is obtained under the authority the Mining Act. This information will be used to maintain a record and

igoing status of the mining claim(s). Questions about this collection should 3 d irected to the Provincial Manager, Minings Lands, Ministry of Northern evelopmenl and Mines, 4th Floor, 159 Cedar Street, Sudbury, Ontario 3E 6A5, telephone (705) 670-7264.

Les renseignements personnels contenus dans la presente formule sont recueillis en vertu de la Lol sur les m ines et serviront a tenir a jour un registre des concessions minieres. Adresser toute quesiton sur la collece de ces renseignements au chef provincial des terrains miniers, ministere du Developpement du Nord et des Mines, 159, rue Cedar, 4e etage, Sudbury (Ontario) P3E 6A5, telephone (705) 670-7264.

. Direct Costs/Gouts directs

Type

Wages Jalalres

Contractor's md Consultant's •ees Jrolts de 'entrepreneur tt de I'expert- :onsell

Supplies Used :ournitures itillsees

•quipment lental .ocatlon de nateriel

Description

Labour Main-d'oeuvreField Supervision Supervision sur le terrain

Type

V,\~**J Dtili;**V

Type

Type

Amount Montant

13, Ml

Total Direct Costs Total des couts directs

Totals Total global

"r. :hV-V^r,-,i**,;H

rW :*M^

fc^vSS

isllli

-w-frs*);;*?^ t&MM

2. Indirect Costs/Couts indirects* * Note: When claiming Rehabilitation work Indirect costs are not

allowable as assessment work.Pour le remboursement des travaux de rehabilitation, les couts indirects ne sont pas admissibles en tant que travaux devaluation.

Type

Transportation Transport

Food and Lodging Nourrlture et hibergementMobilization and Demobilization Mobilisation et demobilisation

Description

Type

Amount Montant

Sub Total of Indirect Costs Total partiel des couts Indirects

Amount Allowable (not greater than 20H of Direct Costs) Montant admissible (n'excedant pas 20 H des coQts directs)Total Value of Assessment Credit Valeur totale du credit Total of Direct and Allowable devaluation Inrilmrt costal (Total dal codtft direct!

Totals Total global

t . '..' ~-

'-:,-:j -.

et Indlrecli admlsslblet

)te: The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification is not made, the Minister may reject for assessment work all or part of the assessment work submitted.

Note : Le titulaire enregistr6 sera term de verifier les depenses demand^es dansande A cet ejeter tout

&UIVC1III UIIG UCle present etat des couts dajneffet. Si la verification n'estjpas _ _ _ou une partie des travaux-pevaluatiorT pr6senteT

ling Discounts

Work filed within two years of completion is claimed at 1000/*) of the above Total Value of Assessment Credit.

Work filed three, four or five years after completion is claimed at 500A of the above Total Value of Assessment Credit. See calculations below:

)tal Value of Assessment Credit Total Assessment Claimed

x 0.50 =

edification Verifying Statement of Costs

iereby certify:it the amounts shown are as accurate as possible and these costs ire incurred while conducting assessment work on the lands shown the accompanying Report of Work form.

it as i rt!\i*-J~ 6-*-0f03^' ______ l am authorized(Recorded Holder, Agent, f*6sition in Company)

make this certification

Remises pour depotJUN 2 3

G LANDS BRANCH1. Les travaux deposes dans les deux ans suivant ieUf UL'IIUVt nent sont

rembourses a 100 'Vo de la valeur totale susmentionnee du credit devaluation.

2. Les travaux deposes trois, quatre ou cinq ans apres leur achievement sont rembourses a 50 07o de la valeur totale du credit devaluation

Valeur totale du credit devaluationx 0,50

Attestation de I'etat des couts

j)! JEvaluatiori'totfile ^erna}id4el \H\V'"'J ""' FER 26 1997

eu-io^ (c) ^-

lj

J'atteste par la presente :que les montants indiques sont le f ft*s~exact-posstble~et que depenses ont et6 engagees pour effectuer les travaux devaluation sur les terrains indiques dans la formule de rapport de travail ci-joint.

Et qu'a titre de. je suis autorised UU*7 *JO _______.^^——————————————————————————————————————— J*' **M,w w(titulaire enregistre, reprSsenlant. poste occupe dans la compagnie)

a faire cette attestation.

Signature Date

Ja- /O V? ~r

Ministry ofNorthern Developmentand Mines

June 27, 1997

Ministere du Developpement du Nord et des Mines Ontario

Gary WhiteMining RecorderOntario Government ComplexP.O. Bag 3060, Hwy 101 EastSouth Porcupine, ONPON 1HO

Dear Sir or Madam:

Subject: Transaction Number(s): W9760.00096

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, OntarioP3E 6B5

Telephone: Fax:

(705) ( 705 )

670-5853 670-5863

Submission Number: 2.17423

StatusDeemed Approval

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

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice.

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

NOTE: This correspondence may affect the status of your mining lands. Please contact the Mining Recorder to determine the available options and the status of your claims.

If you have any questions regarding this correspondence, please contact Bruce Gates by e-mail at gatesj3@torv05.ndm.gov.on.ca or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYRon C. GashinskiSenior Manager, Mining Lands SectionMines and Minerals Division

Correspondence ID: 10980

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .17423

Date Correspondence Sent: J une 27, 1997 Assessor: B ruce Gates

Transaction Number

First Claim Number

W9760.00096 1198995

Section:10 Physical PDRILL

Township(s) l A rea(s)

SHAW

Status

Deemed Approval

Approval Date

May 27, 1997

Correspondence to:

Mining Recorder South Porcupine, ON

Resident Geologist South Porcupine, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):

Paul DavisOUTOKUMPU MINES LTD. Timmins, Ontario

Page: 1

Correspondence ID: 10980

MAP SYM80LOGY

-68

Aerial Cableway ——— —

BoundaryInternational —— * - ——

Interarovlnclal ——— . ———

Oletrict.Teinekip ________ Indian Heeervo

Approiioteto — —-

Lot, Cone.s.ion ————————

Approklaiate — ——— —

Park Boundary —————————

Bridge y *Hood, Railroad

Building L-3

Chimney 0 Cliff, Pit, Pile T- -r -r -r-r

ContoursInterpolated

Approileiat*

Oepreeeioe

Control Pointsrierisantal

Vertical

Culvert - Fall*Doubia lino rivar

sFence, Hedge, —— WallFeature Outline(Conotroction features, l

etc.)

Flooded Land LockMarsh or Swamp -^ -^

.Most f/ Mine Heed Frame a Outcrop cV--'.'

a OI774OSI

O 3OO.02

Pipeline(abava ground)

RailroadSingU Track

Ooubla Track

Abandanid

Turntable

RoadHignoay, County

ACCOII (road of dovfntfvl • aintananca or eigaificant driveway)

Trail, Seek Hoed (portage, ajley)

RapidsDouble liee river vitk multiple rapid*

Ooublf lie* river• itb oiultlple ropi4)

Reservoir P*Hnt'" r

River, Stream, CanalApproilaiat*

Direction of flow .

HockSijnificant

Spot Elevation(lakf elevation*) - 3OO-Q

Tower B 9

Transmission LinePolo* — —* Pylani ———m

Tunnel =

Utility Poles Wharf .Dock, Pier Wooded Area

AREAS WITHDRAWN FROM DISPOSITION

M.R.O. - MINING RIGHTS ONLY

S.R.O. -SURFACE RIGHTS ONLY

M.+ S. - MINING AND SURFACE RIGHTS

Description Order No. O*to Deposition File

REG. PURR SEC 3 PLA

W. 97/77 18/12/77 9.R.O.

188543

66569

SAND AND GRAVEL

GRAVEL 93666

GRAVEL 68760

g)THIS TWR SUBJECT TO FOREST ACTIVITY IN.I99fiy9a\

FURTHER INFORMATION AVAILABLE ON FILE.

THE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES. AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER. MINISTRY OF NORTHERN DEVELOP MENT AND MINES. FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON

WHITNEY TWP.

93660oo mN

10401 "018 \ 2 8

939 70oo mN

480 22' —

\ ' ELDORADO l TWP.

UJE oo . O .*A

LEGENDHIGHWAY AND ROUTE No.

OTHER ROADSTRAILS -

SURVEYED LINES.TOWNSHIPS. BASE LINES, ETC.LOTS. MINING CLAIMS. PARCELS. ETC

UNSURVEYED LINES:LOT LINESPARCEL BOUNDARYMINING CLAIMS ETC

RAILWAY AND RrGHT OF WAY

UTILITY LINES

NON PERENNIAL STREAM

FLOODING OR FLOODING RIGHTS

SUBDIVISION OR COMPOSITE PLAN

RESERVATIONS

ORIGINAL SHORELINE

MARSH OR MUSKEG MINES

TRAVERSE MONUMENT

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOL

PATENT, SURFACE 8. MINING RIGHTS-_^............ 9

. SURFACE RIGHTS ONLY....___.__...-...., O, MINING RIGHTS ONLY ___.__.__......^ O

LEASE, SURFACE 8t MINING RIGHTS.—,..........__ B" .SURFACE RIGHTS ONLY.__....,......r..i...... B" , MINVNG RIGHTS ONLY...........,............_. D

LICENCE OF OCCUPATION .._..____™-.-™.-__ T ORDER IN COUNCIL ....................__.........__OCRESERVATION ......,....___...,....................... ©CANCELLED .._.......__......,......^............. ®SAND ft GRAVEL __....___........_.__.......... 0

NOTE: MINING RIGHTS IN PARCELS PATENTED PRIOR TO MAY 6. 1913. VESTED IN ORIGINAL PATENTEE BY THE PUBLIC LANDS ACT. R.S.O. 1970. CHAP. 3BO. SEC. *3. SUBSEC 1.

Metres500

10 O 10 20 30 40 SO 60 70Ihalnt gMH-HTTp——-—T — - -r—- i——— t——^-^i ~i———^- Chain*

500 O Feel ! n i-i i—

1000 2000 WOO 4000 SOW

SCALE 1:2O OOOGRID ZONEM7

2.17423

TOWNSHI

RECEIVED

JUN 2 3 1997

SHAWMN R ADMINISTRATIVE DISTRICT

TIMMINSMINING DIVISION

PORCUPINELAND TITLES/ REGISTRY DIVISION

COCHRANEMinistry ofNaturalResources

Land

Management

BranchOntario

ORIGINAL COMPILATION

JULY 1984

IM SBRVICE D EC 3, l REVISED

CMECICir) BY : (S*

•Umber

G-3999

42A06NE0120 2.17423 SHAW 200

1206824 (8 Units) 1206822 (2 Units)o o inCM O)

D- - o o o mO)

o o in mO)

5362500 + + + 5362500

1-96

5362000+ +

1198995 (6 Units)

5362000

1206820 (l3 Units) 2-96

2.17423RECEIVED ,

JUN 2 3 ^||1|mr .*Mns BRANCH]

5361500+ +

o o in(M O)

iQ

l

l

42A06NE0120 2.17423 SHAW 210

5361500

o o o mO)

1206821 (l2 Units)

o o in m en

•D-

Plotted with

MICROMINEResources Software Perth. Australia Tel +61 9 389 8722 Fax +61 9 386 7462

Scale

1: 2500

DATE 18/02/97

REF No. l s

SHEET l Of l

FILE hawplan.PLT100m

Diamond Drill HolesPlan Map

Shaw Property

Outokumpu Mines Ltd.

Shaw Property

Shaw and Carman Townships

Geological LegendKomatiitic OrthocumulateKomatiitic MesocumulateKomatiitic AdcumulateKomatiitic PyroxeniteSpinifex Textured KomatiitesRhyoliteAndesiteBasaltFelsic DykeIntermediate DykeMafic DykeGabbroGranitePorphyryDioriteLamprophyreIron FormationGraphitic SedimentWacke

DATE 17/02/97 Diamond Drill Hole

Section 3100 NLooking North

MICROMINE Scale 1:500

Outokumpu Mines Ltd.Shaw Property

Shaw and Carman TownshipsResources Software Perth. Australia Tel +61 9 389 8722 Fax +61 9 386 7462

FILE 5BC3100.PLT

o oID

300

200

(O

o o(M ID

\

300

42A06NE0120 2.17423 SHAW 230

Geological LegendM Koc Komatiitic OrthocumulateM Kmc Komatiitic MesocumulateU Kac Komatiitic AdcumulateU KPx Komatiitic PyroxeniteM Kosx Spinifex Textured KomatiitesM Rh RhyoliteU Ad AndesiteM Ba BasaltM Fd Felsic DykeM Id Intermediate DykeM Md Mafic DykeM Gb GabbroH Gr GraniteM For PorphyryM Di DioriteM La LamprophyreM I F Iron FormationU Sg Graphitic SedimentM Sw Wacke

RECEIVED

JUN 2 3 1997

200

Plotted withMICROMINEResources Software Perth. Australia Tel +61 9 309 8722 Fax +61 9 386 7462

Scale

1:500

DATE 17/02/97

REF No. l

SHEET l Of l

FILE S6C3600.PLT

Diamond Drill HoleSection 3600 NLooking North

Outokumpu Mines Ltd.Shaw Property

Shaw and Carman Townships