kelvin ladouceur/michael thompson · 2017. 1. 16. · claim 4252431 is registered in the name of...

FLADGATE EXPLORATION CONSULTING CORPORATION 195 Park Avenue Thunder Bay, Ontario P7B 1B9 Phone: (807) 345-5380 Fax: (807) 345-1875

Technical Report for MNDM Assessment Purposes

Phase 1 Exploration Program, Bluffpoint Lake

Property Kaiarskons Lake, Bluffpoint Lake, Lawrence Lake and Barker Bay Areas

Kenora Mining Division, Northwestern Ontario NTS: 052F03NW

Prepared For:

Kelvin Ladouceur/Michael Thompson

Prepared by:

Katie Sheridan, B.Sc. Fladgate Exploration Consulting Corporation

Date:

March 27, 2012

TABLE OF CONTENTS

List of Figures ....................................................................................................... 4

List of Tables ......................................................................................................... 4

Introduction ........................................................................................................... 5

1 Terms of Reference ...................................................................................... 5

2 Disclaimer ..................................................................................................... 5

3 Property Description and Location ............................................................. 5

4 Accessibility, Local Resources and Infrastructure .................................... 9

5 Climate and Physiography ........................................................................... 9

6 Geological Setting ...................................................................................... 12

6.1 Regional and Local Geology ........................................................................... 12 6.2 Property Geology ............................................................................................ 15 6.3 Mineralization .................................................................................................. 18

6.3.1 Island Showing ........................................................................................ 18 6.3.2 Original and Northern Showings .............................................................. 19 6.3.3 Harris Lake Showing ............................................................................... 19 6.3.4 The Straw Lake Beach Gold Mine and Konigson Showing ..................... 19

7 Deposit types .............................................................................................. 20

7.1 Bulk-tonnage Granodiorite Batholith-hosted Deposits .................................... 20 7.1.1 Characteristics ......................................................................................... 20 7.1.2 Bluffpoint Granodiorite Batholith-Hosted Deposits .................................. 21

7.2 High-grade Shear-hosted Quartz-carbonate Veins ......................................... 22 7.2.1 Characteristics ......................................................................................... 22 7.2.2 Bluffpoint Shear-Hosted Quartz-Carbonate Deposits .............................. 22

7.3 Other Significant Deposit Types ...................................................................... 23

8 History of Exploration on the Property ..................................................... 23

8.1 Previous Exploration Programs ....................................................................... 23 8.2 Straw Lake Area Work History ........................................................................ 23 8.3 Work History for Other Significant Areas ........................................................ 25

9 Current Program ......................................................................................... 26

9.1 Phase 1 Channel Sampling ............................................................................. 27 9.2 Phase 1 Soil Sampling .................................................................................... 28 9.3 Phase 2 Soil Sampling .................................................................................... 28 9.4 Prospecting and Mapping ............................................................................... 28

10 Method and Approach ................................................................................ 28

10.1 Channel Samples ............................................................................................ 28 10.2 Soil Samples ................................................................................................... 28

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10.3 Grab Samples ................................................................................................. 29

11 Results ......................................................................................................... 29

11.1 Phase 1 Channel Sampling Results ................................................................ 29 11.2 Phase 1 Soil Sampling Results ....................................................................... 37 11.3 Phase 2 Soil Sampling Results ....................................................................... 39 11.4 Prospecting and Mapping Results .................................................................. 39

12 Conclusions and Recommendations ........................................................ 42

13 References and Literature ......................................................................... 42

14 Date .............................................................................................................. 42

15 Statement of Qualifications ....................................................................... 43

Appendix I – Claim & Sample Location Maps ................................. end of report

Appendix II – ALS Chemex Certificate of Analysis ........................ end of report

Appendix III – Work Associated Dates and Costs .......................... end of report

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List of Figures

Figure 1: General Location Map ................................................................................................ 7

Figure 2: Bluffpoint Lake Property Claims .................................. Error! Bookmark not defined.

Figure 3 - Geologic subprovinces of Ontario with Bluffpoint Property location shown ............. 13

Figure 4 - Property geology with gold showings indicated ...................................................... 14

Figure 5 - Distribution of channel samples over the Island Showing ....................................... 30

Figure 6 - Historic sampling in Area A over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 31

Figure 7 - Historic sampling in Area B over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 32

Figure 8 - Historic sampling in Area C over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 33

Figure 9 - Historic sampling in Area D over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 34

Figure 10 - Historic sampling in Area E over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 35

Figure 11 - Historic sampling in Area F over Island Showing; map provided by Fladgate in November 2011. ................................................................................................... 36

Figure 12 - Soil sampling results over the Island Showing ...................................................... 38

Figure 13 - Soil sampling results over the rest of the Bluffpoint Property ................................ 40

Figure 14 - Grab sample results .............................................................................................. 41

List of Tables

Table 1- Bluffpoint Property Claims ........................................................................................... 8

Table 2 - 1981 non-compliant reserve estimate for the Straw Lake Beach Mine (OFR 5332 p. 7) .......................................................................................................................... 24

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Introduction

The Bluffpoint property is comprised of 56 claims totaling 713 units and covering 11,408

hectares, forming an irregular shape with approximate dimensions of 20 km x 14 km (Figure 4.2). The bulk of the property is in Bluffpoint Lake Township, with portions extending into the townships of Lawrence Lake, Napanee Lake and Barker Bay. All claims are currently held in trust for Michael Thompson by Kelvin Ladouceur, and Michael Thompson has 100% ownership on all claims.

From May to September 2011, Fladgate Exploration conducted an exploration program on the

Bluffpoint property and provided all of the required geological and geotechnical services. The exploration program described herein included channel sampling, soil sampling, and prospecting and regional mapping. A total of 96.9 m of channel samples were taken, 524 soil samples were collected, and 85 grab samples were gathered for assay.

1 Terms of Reference

This report was prepared at the request of Fladgate Exploration Consulting Corporation for the use of filing assessment as required under the Ontario Mining Act.

2 Disclaimer

This report is based on information from assessment reports, private reports and general geological reports and maps listed in section 13 “References and Literature”. These reports are considered by the author to be non-NI 43-101 compliant as many were written before the implementation of NI 43-101. The author does not take responsibility for the information provided from such sources.

3 Property Description and Location

The Bluffpoint gold project is located close to the centre of the Kenora Mining Division of Northwestern Ontario, approximately 60 km north of Fort Frances, and 80 km southwest of Dryden (Figure 1). The property is centred on UTM NAD83 Zone 15N 475,448.02 mE, 5,450,971.51 mN. At the time of writing this report, the Bluffpoint property is comprised of 56 claims totaling 713 units and covering 11,408 hectares, forming an irregular shape with approximate dimensions of 20 km x 14 km (Figure 2). The bulk of the property is in Bluffpoint Lake Township, with portions extending into the townships of Lawrence Lake, Napanee Lake and Barker Bay.

Staking of the property was conducted in late 2010 with the exception of one non-contiguous claim in the Straw Lake area which was staked in early 2011.

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Claim 4252431 is registered in the name of Michael John Thompson, the vendor. All other claims are currently held in trust for Michael Thompson by Mr K. M. Ladouceur. Michael Thompson has 100% ownership on all claims. All claim details as shown in Table 1 corresponds to records displayed on Ontario’s MNDMF website. Aleeyah Capital Corp. has signed an option agreement with Michael Thompson to earn an undivided 60-per-cent right, title and interest in the property. According to the option agreement Aleeyah will have to: 4. Issue two million common shares from treasury to Michael Thompson at the close of the transaction; 5. Pay Michael Thompson a cash amount of $100,000 and issue one million additional common shares at or before the first anniversary of the transaction; 6. Pay Michael Thompson a cash amount of $100,000 and issue one million additional common shares at or before the second anniversary of the transaction. After exercise of the initial option and earning a 60-per-cent undivided interest in the property, the company will have a second option to acquire the remaining 40-per-cent interest in the property. In order to exercise the second option, the company must pay a cash amount of $200,000 and issue two million additional common shares at or before the third anniversary of the transaction. The property is subject to a 2-per-cent net smelter royalty in favour of Michael Thompson. The company may acquire one-half of the net smelter royalty at any time by paying a cash amount of $1-million. If the Michael Thompson decides to dispose of its remaining 1-per-cent net smelter royalty, the company shall have the first right of refusal to acquire that remaining 1-per-cent net smelter royalty on the same terms and conditions. In order to maintain the claims in good standing, Aleeyah must spend $400/per claim unit before its due date (Table 1). Based on the current claim status, a total of $283,200 must be applied on or before November 23, 2012, in order to maintain the original claim set in good standing. Note, however, that the 4 claims on Straw Lake are not contiguous with the main claim block (or each other), such that they will require separate work credits. Currently, $1,600 of work has been credited to the four Straw Lake claims and these claims have banked credits of $12,686.

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Figure 1 - General Location Map

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Table 1- Bluffpoint Property Claims

Mining Claim

No. Township/Area Units

Area (ha)

Date Recorded

Date Due for Work Credits to be applied

$ Work Required/Year

Recorded Holder

4256210 Bluffpoint Lake 4 64 23/11/2010 23/11/2012 1,600 Kelvin Ladouceur

4259721 Barker Bay 16 256 23/11/2010 23/11/2012 6,400 Kelvin Ladouceur





4259726 Lawrence Lake 16 256 23/11/2010 23/11/2012 6,400 Kelvin Ladouceur



































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Mining Claim

No. Township/Area Units

Area (ha)

Date Recorded

Date Due for Work Credits to be applied

$ Work Required/Year

Recorded Holder



4260113 Napanee Lake 16 256 23/11/2010 23/11/2012 6,400 Kelvin Ladouceur









4259791 Bluffpoint Lake 1 16 23/11/2010 23/11/2013 400 Kelvin Ladouceur



4252431 Bluffpoint Lake 1 16

11/01/2011 14/01/2014 400 Michael

Thompson

4 Accessibility, Local Resources and Infrastructure

Location and access for the Bluffpoint property is illustrated in Figure 1. The property is situated in Northwestern Ontario, and includes most of Bluffpoint and Sullivan Lakes as well as several other significant bodies of water. Access to the eastern and central parts of the property (including to the Sande showings in the vicinity of Bluffpoint Lake) is provided by Cedar Narrows Road, a major year-round logging road which branches off of Highway 502 just 15 km distance from the property and is maintained on a year-round basis. Access within the property is provided by a number of smaller (and in some cases abandoned) roads which provide very good access to most areas of the property. Some parts of the property are inaccessible by road due to obstruction by lakes; in these places access by boat is a viable alternative.

The towns nearest to the property are Fort Frances (60 km S), Dryden (80 km NE) and Kenora (110 km NW). All three communities have housing and facilities for educational, commercial and leisure activities. The nearest metropolitan centre is Winnipeg, approximately 280 km to the west. The city of Thunder Bay, ~300 km to the east, is the nearest large regional population centre in Ontario, with many services and amenities for industrial, educational and leisure activities. The airport at Thunder Bay has daily scheduled flights to Toronto, Ottawa, Calgary and Winnipeg.

5 Climate and Physiography

Climate in the Bluffpoint Lake area is characterised by long cold winters and temperate summers. No climate data is available for Bluffpoint Lake but average temperatures in the

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nearest town (Fort Frances) range from 14°C to 25°C in the summer and -11°C to -21°C in the winter. Snow cover is prevalent from mid November to late April and restricts surface work (prospecting, mapping, sampling and trenching) to the warmer months; however, cold winter conditions facilitate movement of heavy equipment over swampy ground, and lakes freeze over during the winter making ice roads and drilling on lakes a possibility.

The annual average precipitation for the Fort Frances area is 720 mm including 580 mm of rainfall and 139 cm of snowfall. June sees an average rainfall of 113 mm, while November receives the highest monthly average of 33 cm of snow. The area is classified as a Hemiboreal climate according to the Köppen climate classification.

The area around Bluffpoint Lake is covered with low density mixed-boreal forest. Trees are predominantly Jack Pine, with some birch, poplar, spruce, aspen, pine and cedars. Swamps and other drainage systems are typically characterized by extensive alders and scrub brush or by open grass and low bushes. Swamps are common across the property but tend to be relatively limited in extent. Typical wildlife includes moose, wolf, lynx, bobcat, fisher, marten, wolverine, river otter, weasels, mink, snowshoe hare, squirrels and beavers. Most of the property is covered by overburden; however, the terrain is rugged and overburden cover tends to be relatively thin.

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Figure 2 - Bluffpoint property claims

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6 Geological Setting

6.1 Regional and Local Geology

The Bluffpoint Lake property is located within the volcanoplutonic Wabigoon subprovince, part of the Superior Province of the Canadian Shield (Figure 3). All rocks in the Bluffpoint Lake area are Archean in age. The claims are situated on the southern margin of a large (~6591 km2) irregularly shaped greenstone assemblage in the west-central part of the Wabigoon subprovince. The greenstone in the claims area is composed mainly of interlayered steeply dipping to vertical mafic, intermediate and felsic metavolcanics, with intercalated metasediments. The greenstone assemblage has been intruded by large plutonic bodies; in the claims area, the two major plutonic bodies are the Lawrence Lake batholith to the north, and the Jackfish Lake Complex to the south. The greenstone exists in belts separating these two bodies and ‘wrapping’ around them; the bodies are also separated by the vertically dipping crustal-scale Pipestone-Cameron-Manitou Deformation Zone (henceforth PCMDZ), which also divides the greenstone belt into two structurally distinct regions.

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Figure 3 - Geologic subprovinces of Ontario with Bluffpoint Property location shown

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Figure 4 - Property geology with gold showings indicated

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6.2 Property Geology

Bluffpoint is a large property which covers a substantial portion of the Lawrence-Lake Batholith; it also contains a large segment of the greenstone assemblage both to the south and east of the Lawrence Lake Batholith, and encloses a number of smaller igneous bodies which have intruded into the greenstone. The principal characteristics of these units are summarized below.

Lawrence Lake Batholith: the Lawrence Lake Batholith is a composite intrusive unit occupying approximately 371 km2. 4 distinct phases have been recognized with the Lawrence Lake Batholith (Davis et. al., 1990); the arrangement of phases is roughly concentric, with older phases generally intruding into the core of younger phases. The oldest phases are a contact zone trondhjemite-granodiorite (CZT) which occupies the southern margin of the batholith, and the syngenetic Bluffpoint quartz diorite (BQD). The quartz diorite is intruded to the north by the Lawrence Lake trondhjemite, a fairly massive uniform unit, and the Chuck Lake pluton (a small granodiorite stock) intrudes at the contact between these units. Additionally, the batholith is overlain by (and appears to grade into) an intermediate-felsic volcanic pile in the south. Age estimates vary from 2733 ± 1 Ma for the oldest units to 2715 Ma for the youngest units. Mineralization discovered to date has been confined to the CZT, specifically to zones within 1.6 km of the batholith contacts; these marginal rocks are more foliated, with a greater tendency towards faulting and intense fracturing. Some areas within this margin also show significant alteration (pyritization, sericitization, hematitization and quartz veining); alteration is generally associated with faults. To date only the southern tip (to ~6 km north of the southernmost greenstone-batholith contact) has been mapped in detail; most of the batholith remains virtually unexplored.

Metavolcanics: metavolcanics within the property consist of interlayered, semi-continuous and interfingered zones of mafic, felsic and intermediate volcanics; these layers may also interlayer with metasediments. A variety of textures have been observed, including massive and foliated mafic tuffs, mafic lapilli tuffs, pillowed and amygdaloidal mafic flows, intermediate tuff, crystal tuff and lapilli tuff, and felsic tuff and crystal tuff. Some units contain significant magnetite. Mafic and intermediate volcanics tend to intergrade with no sharp contacts, and differentiation between the two is frequently subjective. In zones of strong deformation all primary structure may be lost, and highly sheared felsic volcanics have been altered to sericite schists. The metavolcanics to the south of the property are fairly well characterized, with mapping both by the OGS (r222) and by various operators (e.g. Sparton Resources in 1983); however those to the west of the Lawrence Lake Batholith are less well characterized, having received little to no exploration activity.

Metasediments: two major packages of metasediments are preserved on the property, one in the vicinity of Thompson Bay and one north of Esox Lake. Both of these packages occupy the cores of synclines and lie stratigraphically above all other rocks in the area. Apart from these occurrences metasediments on the property generally occur as thin beds of limited strike length interbedded with the metavolcanics (usually within felsic-intermediate horizons); these are interpreted as infolded remnants of the same series as the larger packages (Edwards, 1983). No occurrences have been recognized on the north of the PCMDZ. Metasediments range from conglomerate, to wacke, to arkose, to siltstone and mudstone, sometimes with cherty horizons;

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most metasediments are sericitized and variably chloritized. Some beds also have a good magnetic signature due to very fine disseminated magnetite. Edwards (1983) mapped only two occurrences of (pyritic) iron formation on the property, both on the shoreline of Furlonge Lake; but other authors (e.g. Perkins, 1995) have mentioned the discovery of iron formation during mining of the Straw Lake Beach Gold Mine.

Felsic to Intermediate Intrusive Rocks: a number of felsic and intermediate intrusions have been identified on the property. Examples in the Straw Lake area include the Furlonge Lake Stock, a pale orange-pink lenticular quartz monzonite in the vicinity of Furlong Lake, and the Esox Lake Stock, an oval-shaped and possibly composite body of quartz monzonite to granite intruded into tightly folded sediments to the northwest of Esox Lake (Edwards, 1983). Neither intrusion is associated with known mineralization, although the area peripheral to the Furlonge Lake stock was explored by Conwest in 1952. A number of unnamed intrusions are also present in the Straw Lake area, most significantly an ovoid body of quartz-feldspar porphyry south of Sucan Lake and a large body of feldspar porphyry intruded concordant to foliation in the area south of Floyd Lake.

The only major felsic intrusive body in the Vista Lake Area (excluding the batholiths) is the Mirror Bay Stock, which is located directly to the west of Mirror Bay. The Mirror Bay Stock is a large (~1.7 km across) rounded body of medium-grained biotite granite intruded into mafic-felsic metavolcanics as well the Esox Lake sedimentary package. The stock appears to lack tectonic fabric but is somewhat altered; it is unclear whether alteration is related to magmatic hydrothermal alteration or simply to regional metamorphism.

The geology to the north of the property is less well characterized, but OGS mapping to the west of the Lawrence Lake Batholith (P.3075) has identified a highly altered and quartz veined, pyrite rich biotite granodiorite intrusion of potential economic interest.

Mafic to Ultramafic Intrusive Rocks: Most of the mafic and ultramafic magmatism on the Bluffpoint Lake Property is concentrated south of the PCMDZ, where several significant mafic and ultramafic bodies occur. Firstly, a crescent-shaped stock-like mafic-ultramafic body occurs south of Sucan Lake; this is interpreted as a folded lopolith and appears to be compositionally layered. A number of composite mafic to ultramafic and apparently semi-continuous sills stretch SW from this body; this zone extends off the property. Another stock-like composite mafic body (of primarily gabbroic composition) sits to the east of Furlonge Lake, and a lenticular hornblende-actinolite gabbro occurs to the north of Mirror Bay. Finally, a large folded and roughly bedding-concordant mafic-ultramafic body is intruded into metasediments north of Dogfly Lake. Of these, assays for PGEs are recorded only for the Dogfly Lake intrusion; values of Pt and Pd were less than 1 ppb.

Cutting these and other lithologies on the property is a late swarm of N-trending lamprophyre dykes, composed mainly of hornblende and biotite; these are later than most other lithologies (although in the vicinity of Mirror Bay they are cut by late granitic dykes) and are usually less foliated than their host rocks. To the west gabbroic dikes of variable width (up to ~10 m) also occur, intruding most lithologies in the area. Both units are largely restricted to the area south of the PCMDZ.

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Structure: the Bluffpoint Lake area is divided into northern and southern regimes by the PCMDZ. This deformation zone is a wide composite system of discrete brittle faults and anastomosing brittle-ductile shear zones comprising the Pipestone-Cameron Deformation Zone, the Pipestone-Cameron Fault, the Manitou Straits Fault and the Manitou Stretch-Pipestone Lake Fault. In addition to these main structures a number of parallel to subparallel splays (shear zones and faults) have been traced in close proximity to the PCMDZ. A well-defined foliation affects most volcano-sedimentary rocks in the south part of the Bluffpoint Lake Property, and is believed to be related to the PCMDZ. Towards the east end of the property there is a significant (~60°) inflection in the PCMDZ; this contributes significantly to the structural complexity of the property, particularly to the south.

In the Bluffpoint Lake area the PCMDZ separates two very different structural regimes. To the north of the deformation zone, the structural regime is relatively simple and dominated by Lawrence Lake Batholith, with supracrustal rocks wrapping around the batholith and margin sub-parallel faults developed in both the batholith and adjoining lithologies. This regime appears to be modified somewhat towards the south of the regime where foliation is overprinted by PCMDZ. Another direction of faulting has been identified extending out from the batholith; this direction is interpreted as possibly relating to continued uplift within the core of the batholith (Smith, 1993). Structural mapping during historic exploration of the northern part of the property (for instance, by Homestake Canada proximal to Bluffpoint Lake) has identified at least 3 distinct fracture directions, at approximately 45°, 100° and 340° (MacPherson, 1992), which may correspond to these three fault directions. Lineations traced from aerial photography within the batholith confirm at least 3 directions of structure in most areas, with structures warping towards the margin of the batholith; there is however some controversy as to which of these lineations represent faults and which are fractures associated with the cooling batholith (Edwards, 1983).

To the south of the deformation zone the structural regime is significantly more complex. In total, three separate folding events have been distinguished (Smith, 1993). F1 is a subtle folding event consisting of a broad isoclinal synclinorium with north-trending axis centred on Vista Lake and causing all rocks to the west to dip eastwards; no penetrative foliation or cleavage has been observed in the F1 and no other associated structures have been discovered on the property. F1 is thought to possibly be synvolcanic. F2 consists of steeply plunging folds with east-trending axes and a well-developed axial-planar foliation; associated lineations also dip steeply. F2 affects the oldest units on the property (both metavolcanics and some metasediments) but the latest sediments (in particular the Esox Lake sedimentary package) and the intrusive rocks are unaffected. F2 is modified in some places by F3, which forms large scale steeply-plunging folds with north-trending fold axes; these are believed to be related to deformation on the PCMDZ. A number of other distinct fold structures have been identified related to competency contrasts and fold interference; and both F2 and F3 have been observed to form parasitic ‘S’ and ‘Z’ folds.

Faulting/shearing south of the deformation zone is less well defined than to the north. Besides the PCMDZ, a second significant deformation zone has been identified on the far east of the property, extending north from Vista Lake to the Bretz Stock; it is possibly related to D3. The batholith to the south (e.g. the Jackfish Lake-Weller Lake Complex) also exerts a significant influence, both modifying existing structures (which generally bend towards contact-parallelism in proximity to the batholith contact) and forming new radial fault structures. The complex

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interplay of all these structural elements can be observed north of Dogfly Lake, where volcano-sedimentary rocks and mafic intrusives are strongly folded and faulted in multiple directions.

6.3 Mineralization

Several mineralized zones have been encountered on the Bluffpoint property of which the most important are the Sande Showings comprising the Island, Original and Northern Showings; all three are located to the west of Bluffpoint Lake (Figure 4). Other mineralized zones of lesser significance are the Harris Lake Showing, Straw Lake Beach Gold Mine and the Konigson Showing.

6.3.1 Island Showing The Island Showing is a zone of heavily jointed and strongly altered trondhjemite/granodiorite located approximately 60 m from the west shore of the central portion of Bluffpoint Lake. The showing is hosted within the contact zone of the Lawrence Lake Batholith (about 550 m from the batholith-metavolcanic contact), and is considered to be a granodiorite batholith-hosted gold deposit analogous to the Hammond Reef deposit. The Island Showing is the major one of the three Sande Showings. According to a report by MacPherson (1992) for Homestake Canada Ltd., the Island Showing zone is an area approximately 50 m wide x 350 m in length; the zone is slightly arcuate with a strike of approximately 340°. Despite this estimate, the edges of the zone are not particularly well defined. A number of factors complicate definition of zone extents, including poor bedrock exposure (particularly to the north of the showing), nuggety sampling results (Clark, 1990), widespread alteration throughout the area peripheral to the Island Showing, and a poor understanding of the structural controls on the deposit. For instance, to the north the showing exhibits strong alteration and grade until it encounters an area with little outcrop, where it is interpreted as abruptly terminating; the reasons for this termination, as well as its exact position, remain uncertain. Further uncertainty is provided by the close proximity of Bluffpoint Lake; relatively high grab samples (up to 1.2 g/t) have been taken along the shore directly to the east of the interpreted zone, and at its closest, the zone is only 20 m from the edge of the lake, leaving open the possibility of a zone extension (or parallel zone) beneath the lake. Finally, no drilling has been performed on the Island Showing or any of the nearby showings and, as a result, the dip, true thickness and vertical extent of the showing remain completely undefined. Alteration within the showing consists of silica flooding, stockworks and veins, as well as saussurite, sericite, pyrite, carbonate, Fe-carbonate and hematite alteration. Alteration is concentrated around joints, with alteration intensity increasing with joint density. Average gold grades range from 0.005 – 6.6 g/t, with grab samples going up to 28.1 g/t; MacPherson (1992) gave a bulk grade for the mineralized zone as 0.509 g/t based on 160 linear metres of sampling. Gold grade is correlative with pyrite content, which is in turn correlative with fracture density and intensity of alteration; the most intense alteration (and highest Au grades) are found in areas where fractures of different orientations intersect.

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6.3.2 Original and Northern Showings The Original and Northern Showings are of less significance and are peripheral to the Island Showing (Figure 4). The Original Showing consists of a series of shallow-dipping pyritic quartz stringers hosted within the trondhjemite but is proximal to a fine-grained felsic dyke within the batholith. Mineralization is mostly restricted to the veins, with only minor pyritic wallrock alteration. Grades are variable up to 11 g/t with an average for the showing of 923 ppb. Despite the relatively high grades, the footprint of the showing is quite small and it is therefore a low-priority target. The Northern Showing is located 1.35 km north of the Island Showing, approximately along strike of the Island Showing. It consists of a small gold-anomalous zone of high fracture intensity and pyrite content in the core of a much larger quartz-pyrite-hematite alteration zone. The showing itself covers about 25 m2, with gold values of up to 0.85 g/t. Although of limited interest in and of itself, the Northern Showing demonstrates a broad distribution of gold mineralization in the vicinity of Bluffpoint Lake.

6.3.3 Harris Lake Showing The Harris Lake Showing is located approximately 900 m southwest of Harris Lake; the maps created for the Harris Lake showing are of poor quality and the exact location of the Harris Lake Showing (actually 2 distinct showings) is thus unknown, but it is believed that part of the northern Harris Lake Showing is located on the Bluffpoint Lake Property. Due to a very limited work history, few details are available for the Harris Lake Showing. The occurrence is within the CZT of the Lawrence Lake Batholith, and apparently occurs within minimally altered, slightly rusty granodiorite with <1% pyrite content. Historical sampling lines on the northern part of the showing run north-south and extend for about 50 m, with significant gold values encountered up to a maximum assay of 4.424 g/t. Of this, approximately 13 m length of the showing is thought to be on the Bluffpoint Property, with assays ranging from 4 ppb to 702 ppb Au. Nothing further is known about the showing.

6.3.4 The Straw Lake Beach Gold Mine and Konigson Showing The Straw Lake Beach Gold Mine and the Konigson Showing are both located in the vicinity of Straw Lake; the Konigson Showing is situated on the north shore, while the Straw Lake Beach Gold Mine sits approximately 270 m south of the lake. Both are shear hosted quartz vein type deposits. The exact locations of the veins is unknown but the Konigson vein strikes into the Bluffpoint property while the Straw Lake Beach Gold Mine vein dips towards it, so that both veins are believed to be partially contained within the Bluffpoint property. The Straw Lake Beach Gold Mine vein is 5 cm to 65 cm wide and is hosted along the contact between a ‘sericite-schist’ (a highly sheared and altered felsic volcanic unit) and a vertically dipping mafic volcanic unit, in a shear zone associated with the Manitou Stretch-Pipestone Lake Fault.

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Although mineralization is primarily in the vein, economic grades (up to 12 g/t) have also been encountered within the host felsic volcanics and within sulphide iron formation intercepted during mining. Average gold grades within the vein are about 6 g/t. The Au:Ag ratio is approximately 10:1. The vein is primarily quartz with some pyrite and lesser amounts of magnetite, carbonate, sphalerite, galena, tetradymite, chalcopyrite and native gold; pyrite alteration and low anomalous gold extend into the wallrock on both sides. It has been noted that gold content in the vein is inversely proportional to tetradymite content. The Konigson showing is similar to the Straw Lake Beach Gold Mine vein in many respects. It consists of a steep-dipping pyritic quartz vein hosted in highly sheared felsic volcanics. The vein strikes 280° and was traced for 140 m; the average vein width is estimated at 1.8 m. Mineralization consists of visible gold associated with pyrite and traces of chalcopyrite. Maximum assays for the Konigson showing are around 39.18 g/t Au while typical grades range from 0.69-27.4 g/t Au.

7 Deposit types

The interpreted geology in and around the Bluffpoint property is conducive to epigenetic mesothermal gold mineralization of two types; namely bulk-tonnage granodiorite batholith-hosted and high-grade narrow vein shear hosted deposits.

7.1 Bulk-tonnage Granodiorite Batholith-hosted Deposits

Bulk-tonnage granodiorite batholith-hosted gold is currently the priority target on the Bluffpoint property. Granodiorite batholith-hosted gold is a relatively new deposit type first identified at Osisko’s Hammond Reef project (6.7 million ounces averaging 0.8 g/t) in Atikokan, Ontario, and now recognized at Trelawney Mining’s Chester Township property (the Cote Lake Deposit) between Sudbury and Timmins. Note, however, that no official terminology has been adopted and some geologists consider Hammond Reef to be similar to the Fort Knox deposit in central Alaska (Rennie et al., 2009). Granodiorite batholith-hosted gold presents significant potential for exploration both because it has only recently been recognized as a deposit type and because of its occurrence in batholiths, a terrain which is typically under-explored relative to the surrounding rocks. Many aspects of batholith-hosted gold are poorly understood since little research has been performed and no deposits have yet been brought into production. The deposit model is described below, with an emphasis on the Hammond Reef deposit which can be considered as the “type” deposit.

7.1.1 Characteristics The deposits tend to occur in close proximity to faults and shears, particularly at structural intersections. Known deposits (including Hammond Reef and Cote Lake) are localized along the relatively deformed margins of batholiths. Despite the close association with shears and faults, the batholith-hosted deposits are not localized directly within the shears but instead occur as shallow-dipping roughly tabular bodies with significant thickness and strike length (about 450 m by 3 km at Hammond Reef). Mineralization within the zone consists of subparallel slabs and pods showing stockworks, fracturing and alteration. Quartz alteration is ubiquitous, both as silica flooding and as vein-filling material forming veins, stringers and stockworks. Rocks may also show varying degrees of chlorite, calcite,

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ankerite, sericite, saussaurite, pyrite, hematite and fuchsite alteration. A number of other minerals have been identified in trace amounts including galena, chalcopyrite, sphalerite, bornite, bismuth telluride, stromeyerite (AuCuS) and molybdenite. Based on this mineralogy, a fairly typical (for Archean gold) Au-Ag-Cu-Pb-Zn-Te-Mo-Bi association can be inferred for Hammond Reef; whether this association also applies to other deposits of this type is unknown. Within the mineralized zone grades typically range from 0.2 to 2 g/t, although much higher grades have been reported at Hammond Reef (up to 68.9 g/t), generally within quartz veins. Gold occurs as free native gold, with most grains less than 15 μm in size. The most important control on gold appears to be the presence of significant densities of brittle fractures. Gold is also broadly correlative with pyrite content and is preferentially sited on pyrite aggregate grain boundaries (Rennie et al., 2009). The presence of bismuth tellurides (generally as greyish smear and stains) is also considered a reliable indicator of significant grade.

7.1.2 Bluffpoint Granodiorite Batholith-Hosted Deposits In the Bluffpoint project area, two deposits have been identified which share many characteristics with the Hammond Reef deposit; these are the Pine Centre Showing north of Floyd Lake (currently owned by Mineral Mountain) and the Island Showing. Both deposits are developed within the CZT phase of the Lawrence Lake Batholith, both show a strong association with intersecting structures, and both are relatively large but low grade (average grades range from ~0 – 6 g/t, with an estimated average of 509 ppb for the Island Showing (MacPherson, 1992). Because drilling has never been performed, the subsurface morphology of the Island Showing is unknown; however, the Pine Centre Showing is thought to be a shallow-dipping tabular body 5 m to 20 m thick with 700 m strike length. The mineralized zones consist of intensely fractured (in places >10 fractures per linear metre) trondhjemite (granodiorite) exhibiting quartz veining, stockworks and flooding and a variety of alteration phases including silica, saussaurite, sericite, pyrite, chlorite, pale greenish carbonate, ankerite and hematite. Gold occurs as fine native gold, and is visible within some quartz veinlets. Gold grade is correlative with fracturing/alteration intensity, with pyrite content (which may be up to 10% at fracture intersections), with quartz veining (which often shows elevated gold grades) and possibly with cross-cutting fault structures. Gold is inversely correlative with magnetite content and pyrite is thought to replace magnetite within the zone. To date, detailed geochemistry has not been carried out on either deposit and the geochemical signature of these deposits is unknown. Apart from these two main zones, a number of other showings have been identified within the batholith, including the Original Showing just south of the Island Showing and the Pine Hill Showing just to the west of the Pine Centre Showing; of these, only the Original Showing is situated within the Bluffpoint property. These showings consist of much smaller zones of shallow-dipping pyritic quartz stringers and veins exhibiting only minor wallrock alteration haloes. Most of the gold in these showings is concentrated within the veins. Significant gold values (up to 11 g/t at the Original Showing) have been recorded within these showings but due to their limited extent, they are considered to be much less prospective than those showings exhibiting significant wallrock alteration. Another showing of interest is the Harris Lake Showing south of Harris Lake where gold mineralization appears to be hosted in a slightly pyritic (<1%) lightly altered or visibly unaltered granitoid (Sande, 1994); best assay results were 4.4 g/t Au. The sampling site is approximately 1.5 km from the batholith margin and is thus situated similarly to the Island and Pine Centre Showings. Further work is needed to determine whether this could be part of a larger zone and what characteristics (if any) it shares with other granodiorite batholith-hosted gold deposits.

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7.2 High-grade Shear-hosted Quartz-carbonate Veins

This deposit type has a long history of exploitation throughout the Canadian shield and includes many of Canada’s most important gold producers (e.g. Sigma-Lamaque, Dome, Hollinger-McIntyre, Pickle Crow). The deposit model is briefly outlined below.

7.2.1 Characteristics Shear-hosted quartz-carbonate deposits are characterized by the formation of gold-bearing quartz carbonate veins in shear zones within deformed greenstone belts. Veins can be hosted in any lithology within the greenstone belt; generally each district has particular host rocks which may be most favourable on chemical or structural grounds (Dubé, 2007). Host structures tend to be moderately to steeply dipping compressional brittle-ductile shear zones and faults in proximity to major crustal fault zones. Although any greenstone is a potential host, world-class deposits tend to show associations with tholeiitic basalts and ultramafic komatiitic flows, swarms of albitite and lamprophyre dykes and regional unconformities. The principal vein gangue minerals are quartz and carbonate (Ca, Mg and Fe carbonates) with variable sericite, chlorite, tourmaline and scheelite. Sulphides may also be present, including pyrite, pyrrhotite, chalcopyrite, molybdenite and arsenopyrite; they typically constitute less than 10% of the vein by volume. The geochemical signature of quartz-carbonate deposits is typically Au, Ag, As, W, B, Sb, Te, and Mo, sometimes with anomalous Cu, Pb and Zn. Gold usually occurs in the native form, and is often visible to the naked eye. The average grade for Canadian quartz-carbonate deposits is about 10 g/t Au, while Au:Ag ratios usually range from 5:1 to 10:1. Gold is largely confined to the quartz-carbonate veins, but sulphidized wallrock can also attain economic grades.

7.2.2 Bluffpoint Shear-Hosted Quartz-Carbonate Deposits The primary example of a shear-hosted gold vein deposit in the Bluffpoint project area is the Straw Lake Beach Mine, located just south of Straw Lake. All development at the mine was along a single quartz vein, which was mined to a depth of 220 m and drifted on over a strike length of about 325 m; post-closure drilling has indicated that the gold-bearing horizon may actually stretch for 1.4 km or more. The vein is generally 5 cm to 65 cm in width, although in places it branches into sets of smaller parallel veins. The vein is hosted along the contact between a ‘sericite-schist’ (a highly sheared and altered felsic volcanic unit) and a vertically dipping mafic volcanic unit, in a shear zone associated with Manitou Stretch-Pipestone Lake Fault. Although mineralization is primarily in the vein, economic grades (up to 12 g/t) have also been encountered within the host felsic volcanics and within sulphide iron formation intersected during mining. Average gold grades within the vein are ~6 g/t, although locally much higher assays have been recorded (including a 24.43 oz/ton Au sample taken from the mine dump in 2006). The Au:Ag ratio is approximately 10:1. The vein is primarily quartz with some pyrite and lesser amounts of magnetite, carbonate, sphalerite, galena, tetradymite, chalcopyrite and native gold; pyrite alteration and low anomalous gold extends into the wallrock on both sides. It has been noted that gold content in the vein is inversely proportional to tetradymite content. Apart from the Straw Lake Beach Gold Mine, a number of other smaller gold-bearing veins are known from the Bluffpoint Lake area; these include the Konigson Showing on the north shore of Straw Lake, the Johnston Vein (about 400 m north of the Konigson vein) and the Cracker Jack occurrence (somewhere to the east of the Bluffpoint property). Based on the presence of significant

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shear zones (particularly the PCMDZ) as well as an expansive package of underexplored volcano-sedimentary rocks and a widespread distribution of gold mineralization in the area, there is considerable potential for further gold bearing shear-hosted quartz vein deposits on the property.

7.3 Other Significant Deposit Types

The Gates Bay and Sorry Mac occurrences just to the east of the property are of the disseminated type in volcano-sedimentary rock, and thus represent a type of deposit distinct from the deposits discussed above. These deposits consist of strongly sheared, rusty, mineralized schists which have been silicified, sericitized, carbonatized, pyritized and occasionally chloritized and locally contain quartz veinlets and stringers. They may be of significant width (up to 50 m) and extend for considerable strike lengths. The mineralogy is quite distinct from the shear hosted quartz veins, with the major gangue minerals being pyrite and arsenopyrite. Gold grades seem to be highest in areas of very high As concentration, with assays up to about 18 g/t in very As rich areas (Jaworski, 1990). Although neither the Gates Bay nor the Sorry Mac deposits are on Fladgate’s claim block, there is potential for further occurrences of this type of mineralization within the volcano-sedimentary units on the Bluffpoint property. Potential for another type of deposit also exists to the northwest of the property in a highly altered, quartz-veined and pyritized biotite granodiorite plug to the south of Hill Lake (Chivers, 1986). Currently it is unknown whether this granodiorite is gold-bearing; additionally it is unknown whether the observed alteration is intrusion-related or whether the alteration is externally derived (e.g. alteration related to a shear zone). In any case, gold related to intrusive bodies is a fourth possible exploration target in the Bluffpoint project area.

8 History of Exploration on the Property

8.1 Previous Exploration Programs

The Bluffpoint Lake area has a long history of mining and exploration. Mining activity was initiated in 1899 by the CrackerJack Gold Mining Company, which sunk 3 small shafts on a lost 80 cm gold-bearing vein to the east of the property, and exploration has been more or less ongoing since that time. Section 8.2 provides additional detail regarding the work history of the Straw Lake area, while section 8.3 focuses on the history of other key areas of interest around the Bluffpoint Lake property.

8.2 Straw Lake Area Work History

Interest in the Straw Lake area was first ignited in 1927 when Ed Konigson, a local trapper, found a vein bearing visible gold on the north shore of Straw Lake (the ‘Konigson Showing’). He single-handledly sunk a test shaft on the vein to a depth of 40’, and assays up to 39.18 g/t Au were recorded, but the vein was never mined. Shortly after in 1933, prospectors Murdock Mosher and Fred Grozelle discovered a 2-25 inch wide quartz vein with visible gold and associated silver extending for significant strike length on the south shore of Straw Lake; prospector William Lucy also found a showing to the east the same year. In 1934, the Straw Lake Beach Gold Mines Syndicate was formed to exploit the new discoveries. The Straw Lake Beach Gold Mine opened in 1938 on the Mosher/Grozelle vein. Over the life of the mine, 723 feet of shaft was sunk and six levels were mined, with a total production of 11,568 oz Au (327, 950 g Au) and 1,049 oz Ag (29, 740 g Ag) from

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33,632 tons of ore. The mine closed in 1941 with plans to reopen following installation of a new power plant, but mining at the Straw Lake Beach Mine was never resumed. In 1981, the OGS estimated the remaining reserves (non NI 43-101 compliant) at the mine (Neilson & Bray, 1981); these are shown in Table 5.

Table 2 - 1981 non-compliant reserve estimate for the Straw Lake Beach Mine (OFR 5332 p. 7) Historical classification and category

Tons Grade oz/t Au Estimated reserve grade and tonnage

Probable reserves – U/G 32,000 0.2 6,400

Possible reserves – U/G 32,000 0.2 6,400

Possible reserves – surface dump 30,000 0.15 4,500

Speculative reserves – U/G 48,000 0.2 9,600

Total 142000 0.19 26,900

Following mine closure, no further work was performed in the Straw Lake area until 1970, when Freeport Canadian Exploration flew EM and Mag surveys to the west and south of the mine. Follow-up drilling of anomalies by Freeport in 1971 focused on the Manitou fault to the west of the mine, but conductive anomalies proved to be graphitic and only low gold values were encountered. In 1976, the mine area was restaked by Mindel Mines, who drilled 3 holes around the mine; again, only weak structures and low gold values were encountered. Then, in 1983, Sparton Resources staked a large claim block encompassing the mine and its eastward and westward extensions. The company carried out an intensive exploration program, including geologic mapping, trenching, B-horizon and humus surveys, EM/Mag/IP surveys, and drilling. In total, 5 diamond drill holes were completed. The best result was 0.32 oz/t over 5 ft (9 g/t Au over 1.5 m.) in hole SL-83-2, drilled along strike into the westward extension of the Straw Lake Beach Mine vein. Results were not positive enough to support further work by Sparton. In 1985, J.A. Bolen staked a block of claims to the north of the mine, including the north tip of Straw Lake and the Johnston vein. Mapping and EM/Mag surveys identified 3 shear zones on the property, and one grab sample returned 39.429 g/t Au. Sampling along the shear zones proved mostly fruitless, so in 1988 J.A. Bolen shifted his focus to a claim group covering Straw Lake just north of the Straw Lake Beach Mine, where he once again performed EM and MAG surveys. Follow-up drilling in 1988 (8 holes) and 1990 (5 holes) was disappointing, with a best assay of only 0.33 g/t Au, and the claims were subsequently lapsed. The Straw Lake Beach Mine was restaked in 1988 by Dayton Porcupine Gold Mines, who sampled the waste dump, performed a Mag survey over the property and drilled 8 diamond drill holes. Their best result was 0.141 oz/t Au over 2 ft (4.0 g/t Au over 0.60 m.). The mine and a significant area to the east was restaked by Tri Origin Exploration in 1994, and they carried out an extensive program of work over the next three years, including grid cutting, IP and EM surveys, geologic mapping, trenching, sampling and diamond drilling. Their best result was to the east and approximately along strike of the mine with drill hole SLT95-01 returning 0.141 oz/t over 2 ft(4.0 g/t Au over 0.60 m.).

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Only one other hole assayed above 1 g/t, and the company ceased work after 1996. No further work was carried out until Shotgun Exploration picked up some claims around the mine in 2005; they carried out limited sampling which returned assays as high as 219.3 g/t Au. Shotgun optioned the claims to Mineral Mountain in 2010. Currently, Straw Lake and the Straw Lake Beach Mine property are held by Mineral Mountain, excepting 4 claim units on Straw Lake which are held by Michael Thompson.

8.3 Work History for Other Significant Areas

A number of other significant prospects have been identified in proximity to the Bluffpoint Lake property. The first of these was the Gates Lake occurrence to the far east of the property, first prospected by Pan American Exposition in 1901. More work in the Gates Lake area was performed by Sylvanite Gold Mines and Goldale Mines from 1940-1942, with both companies drilling in 1944. Recorded trenching results were encouraging with a best result 0.46 opt over 2.4 ft (13 g/t Au over 0.73 m.), but the results from the drilling program are unknown. Further prospecting around the Gates Lake occurrences was done by R. Portelance in 1981 and by Norontex in 1983. Then in 1983 J. Scouten discovered the Sorry Mac showings about 3.5 km to the SE of Gates Lake. Sparton Resources optioned the ground and performed geologic mapping, trenching, EM and Mag surveys and drilling from 1984-1986. Best drilling results were 3.5 g/t Au over 0.75 m and 2.29 g/t Au over 2.6 m; the claims were returned to J. Scouten in 1987. Both showings were subsequently staked by Homestake Mineral Development Co., who carried out geophysical and geochemical surveys as well as resampling the trenches and drilling. Results were disappointing, and the claims were again lapsed. Currently, the Sorry Mac showings are held by International Precious Metals Group. In 1976, the Ontario Geologic Survey (OGS) published Report 222 “Geology of the Straw Lake Area”. In this report, mention was made of a 0.54 opt Au (15.3 g/t Au) grab sample taken in the Lawrence Lake batholith north of Floyd Lake. The area was staked, trenched and sampled by Robert Fairservice in 1979. His 11 samples averaged 5.79 g/t with a maximum of 94.21 g/t in a 15 cm quartz vein. The property was optioned and drilled by Selco Mining in 1980. Initial drill results were disappointing (best assay 1.03 g/t over 0.61 m) but Selco continued their program in 1981 with EM and Mag surveys, geologic mapping, prospecting and further drilling. The company returned the property to Fairservice at the end of 1981; he then optioned it to Noranda Exploration in 1982. Noranda carried out geochemical and geophysical (IP) surveys over a larger area,as well as trenching and drilling. Trenching results were positive (16.8 g/t over 3.05 m and 3.77 g/t over 3.05 m), but drill results were disappointing, and the property was once again returned to R. Fairservice. Again in 1985 the property was optioned out, this time to Minnova. A program of geologic mapping, IP and humus surveys, sampling and trenching identified multiple anomalies. Extensive drilling was carried out over the next 4 years, with a total of 28 holes drilled on the property. The best results are recorded as 2.02 g/t over 5.6 m, 3.12 g/t over 4.8 m and 4.32 g/t over 1.5 m. The program delineated a gold-bearing alteration system approximately 244 x 23 m around the Pine Centre showing before the claims were allowed to lapse. In 2000, Robert Fairservice restaked part of the claim block and discovered a new showing; he successfully optioned the claims to Opawica Explorations in 2003. Opawica did extensive trenching and sampling across the property in 2003, with best results near the Pine Centre showing with about 2.85 g/t Au over 20 m. Subsequently they drilled 22 holes on the property; initial results were encouraging (highlights include 1.25 g/t Au over 14.5 m, 1.0 g/t over 15.7 m, 3.43 g/t over 3.2 m and 6.39 g/t over 0.8 m) but the results of later drilling were a disappointment and Opawica dropped the option. The claims were transferred to

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Western Warrior (later Whetstone Minerals) in 2006; they sold their option to the current holder Mineral Mountain in 2011. In 1988, David Sande staked and prospected a claim block in the Lawrence Lake Batholith to the west of Fairservice showing. Two samples of altered granitoid returned values of 2.74 g/t Au, and trenching in 1989 returned a best result 10.3 g/t over 1.5 m. In 1990, D. Sande executed a larger program of geologic mapping, trenching and sampling. The results were again positive and defined two significant showings (the ‘Original’ and ‘Island’ showings). In 1992, the property was optioned to Homestake Canada. Homestake carried out humus and geophysical (EM + Mag) surveys, geologic mapping, trenching, sampling and prospecting over a fairly large area, while trenching focused on the Island showing. A total of 160 linear metres of channel sampling was performed with an average grade of 0.509 g/t Au; geologic mapping delineated a gold-bearing alteration zone approximately 345 x 40 m in area. A number of additional showings were also identified to the north and southwest. Homestake considered the deposit too small to continue work, and the claims were lapsed. No drilling was ever carried out on the property. The showings and surrounding area were restaked by Michael Thompson in late 2010.

9 Current Program

From May 21, 2011 to June 7, 2011, Fladgate Exploration conducted a Phase 1 exploration program on the Bluffpoint property whose main objectives were:

1) Locate the site of historic chip and channel sampling of the Island Showing by Garry Clarke and Homestake Canada respectively, and determine the GPS co-ordinates of these areas

2) Investigate the Island Showing with a focus on identifying controls on mineralization and the total extent of the zone

3) Twin historic channel samples on the Island Showing as a due diligence measure 4) Conduct B-horizon soil sample lines across the Island Showing to help delineate the

zone and to test the effectiveness of B-horizon sampling in detecting this type of mineralization

5) Prospect, sample and map geology, alteration and structure in the vicinity of the Sande showings to identify the potential for other Au occurrences in this area of the property

During this program, three Fladgate employees (John Fingas, Edwin Escarraga and Jamie Black) were employed continuously while two more Fladgate employees (Michael Thompson and Avery Henderson) visited the property from May 30th, 2011 to June 1st, 2011.

A second soil sampling program took place intermittently from July 26, 2011 to Sept.4, 2011 where B-horizon soil sampling was conducted over the central and northwestern parts of the property and covered areas underlain by both plutonic and metavolcanic units. The Fladgate personnel conducting the sampling and managing the program included Kelvin Ladouceur, Daniel Achneepineskum, Marcus Brissard, RJ Mallory, John Stewart, Donny Bell, Greg Dolasinski, Dennis Jalava, and Rob Broad.

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9.1 Phase 1 Channel Sampling

Phase 1 channel sampling took place over a period 9 days from May 24th to June 1st, 2011. Channel samples were planned in order to twin historic chip and channel results taken in 1990-1991 and 1992. A total of 96.9 m of channel samples were taken.

The Homestake channel samples from 1992 were easily located because the original channels are still well preserved in the Island Showing outcrops. No sample tags were present at these outcrops, but definite identification of most channels was possible based on the sampling diagrams from MacPherson (1992). Chip samples were much more difficult to locate as the marks made by sampling are no longer visible on the outcrop; however, a detailed outcrop map present in the report by Clark (1991) combined with flagging tape labels permitted identification of most of the outcrops where chip samples were taken in 1991.

Because most of the new channels were designed to closely twin historic sampling, mechanical trenching and high-pressure washing of outcrops was unnecessary. In some places outcrops were significantly overgrown but clearing of these outcrops by hand was possible. Channels were marked with orange spray paint.

In general, channels were cut adjacent to significant grades in historic sampling, but some channels were extended beyond historic channeling or linked to provide more continuous sample intervals. While ideally channel samples would be cut perpendicular to mineralization, in practice this was problematic for a number of reasons:

1) At the current time, the Bluffpoint mineralization is not well enough understood to establish an overall orientation

2) In several channel locations, multiple structural fabrics exist, often perpendicular to each other

3) Channel samples were designed to twin historic channels/chips, which were cut at multiple orientations

4) Because no mechanical trenching was performed, outcrop dimensions placed some constraints on channeling lengths and orientations

For all of these reasons, channel sample orientations were chosen separately at each outcrop and vary widely. There is thus no guarantee that channel intervals represent the true width of mineralization.

All channel cutting was done using a Stihl Cutquik© handheld abrasive saw with diamond blades; wear was significant due to the hardness of the rock being cut (granitoid) and 2 saw blades were used up. The saw was cooled during use by water sprayed from a handheld pump. Cross-sectional dimensions of channels were variable but generally 3 cm wide by 4.5 cm deep. Channels were chipped out by hand after being cut; all chipped channels were labeled using concrete nails and aluminum tags. In total, 73 channels were cut for a total of 96.9 linear m of channel sampling; the average channel length was 1.33 m, with a maximum sample length of 1.5 m and a minimum sample length of 0.6 m.

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9.2 Phase 1 Soil Sampling

Phase 1 soil sampling took place over a six day period from May 25, 2011 to May 30, 2011. The main objective of the soil sampling was to define the extensions/limits of the Island Showing. Sampling was conducted at a spacing of 75 m between lines (trending N75E) and 15 m between sample points. A total of 150 B-horizon samples were collected. A duplicate sample was taken every 20 samples for QA/QC purposes.

9.3 Phase 2 Soil Sampling

Phase 2 soil sampling was conducted intermittently from July 26, 2011 to September 4, 2011. Samples were collected over broader distances, typically 50 m, with 800 m between lines. In some areas, only a single line was collected, simply to gather data across areas of known lithologies but otherwise untested ground. 329 samples were collected in this second phase.

9.4 Prospecting and Mapping

Prospecting and regional mapping was also conducted during the 2010 exploration program to enhance understanding of the structural controls on mineralization, as well as to test potential of other areas of the Bluffpoint property. Prospecting/mapping took place from June 1, 2011 to June 7, 2011. 79 grab samples were taken for assay.

10 Method and Approach

10.1 Channel Samples

Channel samples were placed in thick plastic sample bags with the sample number clearly written on the outside of the bag with a permanent marker and one portion of a three part sampling ticket placed inside. Each sample was sealed with a cable strap. Samples were then transported to Thunder Bay by Fladgate personnel and delivered directly to the ALS Minerals preparation laboratory in Thunder Bay. All samples were analyzed using a 33 element four acid ICP-AES method (ALS Minerals Analytical method ME-ICP61) with 30 g Au fire assay finish (Au-ICP21) and 30 g fire assay and gravimetric finish (Au-GRA21). The quality measures taken to ensure the accuracy of the assaying and analytical procedures during the program included 3 QA/QC samples inserted in each batch of samples. The QA/QC samples consisted of one blank sample and 2 gold standard samples. A medium standard type G301-10, and a high standard type G904-3 were used.

10.2 Soil Samples

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For the soil sampling programs, all samples were sealed in brown Kraft bags tied with orange flagging tape with the sample number clearly written on the outside of the bag using a black marker. The sample number, description and UTM location were written in a field notebook. All samples were transported by Fladgate personnel from the field location to Fladgate’s offices in Thunder Bay and hung in a secure building to dry. Once the soil samples were dry, they were transported to the ALS Minerals preparation laboratory in Thunder Bay, again by Fladgate personnel. In the Island Showing sample batch, 7 QA/QC samples were inserted into the sample stream approximately after every 20 samples. For the 356 reconnaissance samples covering the northwestern and central areas, no QA/QC samples were submitted. All soil samples were analyzed using a 51 element aqua regia digestion with ultra-low detection limits and a combination of ICP-AES and ICP-MS methods (ALS Minerals preparation code PREP-41 and analytical code ME-MS41L).

10.3 Grab Samples

During the prospecting program each grab sample was placed in a thick plastic sample bag with the sample number clearly written on the outside of the bag with permanent marker and one portion of a three part sampling ticket placed inside. Each sample was sealed with a cable strap. Samples were then transported to Thunder Bay by Fladgate personnel and delivered directly to the ALS Minerals laboratory in Thunder Bay. All grab samples were analyzed using a 51 element aqua regia digestion and the ICP method (ALS Minerals preparation code PREP-31 and analytical method ME-MS41L).

11 Results

The results of each component of the 2011 program are described in the following sections.

11.1 Phase 1 Channel Sampling Results

Based on the distribution of exposures within the Island Showing domain, the sampled zone was subdivided into 6 areas, designated A to F, to facilitate detailed presentation of the results. The overall results are presented on Figure 5. Detailed results for each of the segments A to F are presented in Figures 6-11. Note that in Figure 6, no diligence sampling was conducted by Fladgate in Area A and historical results are presented to provide a complete picture of the detailed areas. On the whole, Fladgate’s results compare favourably with the historic channel sample results. Highlights of Fladgate’s channel sampling include 7.37 g/t Au over 1.0 m, 6.07 g/t Au over 1.3 m, and 3.52 g/t Au over 1.0 m. Out of a total of 73 channel samples collected, 33 assayed above 0.5 g/t Au.

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Figure 5 - Distribution of channel samples over the Island Showing

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Figure 6 - Historic sampling in Area A over Island Showing; map provided by Fladgate in November 2011.

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Figure 7 - Historic sampling in Area B over Island Showing; map provided by Fladgate in November 2011.

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Figure 8 - Historic sampling in Area C over Island Showing; map provided by Fladgate in November 2011.

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Figure 9 - Historic sampling in Area D over Island Showing; map provided by Fladgate in November 2011.

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Figure 10 - Historic sampling in Area E over Island Showing; map provided by Fladgate in November 2011.

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Figure 11 - Historic sampling in Area F over Island Showing; map provided by Fladgate in November 2011.

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11.2 Phase 1 Soil Sampling Results

The B-horizon soil sampling results for the Island Showing are shown on Figure 12. The showing is weakly reflected in the sampling results; however, the overburden in this area has been highly disturbed due to previous exploration efforts and so a stronger signature may be possible in other areas with similar styles of mineralization.

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Figure 12 - Soil sampling results over the Island Showing

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11.3 Phase 2 Soil Sampling Results

Soil sample results from the second phase of soil sampling in the central and western parts of the property show anomalous zones about 2.5 km to 3 km north and about 4 to 5 km northeast of the Northern Showing (Figure 13). Sample names and locations at the 1:5000 scale are included in Appendix 1 .

11.4 Prospecting and Mapping Results

The most significant results are those occurring to the north of the Northern Showing over a stretch of about 1.5 km, culminating in the highest assay of 17.85 g/t Au. All the anomalous values are in granodiorite and are shown in Figure 14. Other assay values of significance include 3.05 g/t and 0.486 g/t about 150 m and 100 m to the west and northeast of the Island Showing, respectively.

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Figure 13 - Soil sampling results from Phase 2 sampling over the rest of the Bluffpoint Property

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Figure 14 - Grab sample results

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12 Conclusions and Recommendations

Fladgate’s due diligence channel sampling in the Island Showing area of the Bluffpoint property has been successful in confirming/validating the historic assays previously obtained by D. Sande and Homestake. Detailed soil and grab sample results have confirmed granodiorite-hosted gold mineralization at surface over much broader zones than previously defined by Homestake. However, the geometry and full extents of the zones remain to be established. It should also be noted that the soil and grab sampling program completed to date covers only about a fifth of the project area and much work still remains to be done. Nonetheless, the overall objective of confirming and expanding the Original, Island and Northern Showings has been achieved. Reconnaissance B-horizon soil sampling has identified new mineralized areas of potential economic interest about 2 km to 3 km and 4 km to 5 km to the north and northwest of the Northern Showing, respectively. Follow-up soil sampling is recommended on areas that returned anomalous gold results in the 2011 program, as well as a diamond drill program to test the extent of the mineralization of the Island Showing.

13 References and Literature

Author Year Title

Beakhouse, G.P. 1988

Project Number 88-7. Reconnaissance Investigations of Granitoid Rocks in the Wabigoon Subprovince: p. 149-152 in Summary of Field Work and Other Activities 1988, Ontario Geological Survey, Miscellaneous Paper 141, 498p.

Clark, G. 1991 Evaluation of the Gold Mineralization of the Bluffpoint Property, Fall 1991

MDI52F03NW00004 1984 Straw Lake Beach Mine – 1934, Minedel Mines - 1934

MDI52F03NW00007 1991 Johnston Vein – 1940

MDI52F03NW00038 1984 Konigson, Edward – 1934, Eustace, A.J. - 1934

MacPherson, J. A. 1992 Report on the Phase 1 Exploration program October, 1992 on the David E. Sande Property. Assessment report for Homestake Canada Ltd.

Mineral Mountain Resources Ltd.

2010 http://www.mineralmtn.com/s/StrawLake.asp

Stone, D. 2010 Precambrian geology of the central Wabigoon Subprovince area, northwestern Ontario: OGS OFR 5422, 130p.

14 Date

This report was completed on March 26, 2012.

Page | 43

15 Statement of Qualifications

I, Katie Sheridan, of the CITY of THUNDER BAY, in the PROVINCE of ONTARIO, hereby certify that: I am presently employed full-time by Fladgate Exploration Consulting Corporation at 195 Park Avenue, Thunder Bay, Ontario, Canada P7B 1B9. I am a graduate of Carleton University with a Bachelor of Science Degree (2010) and have practiced my profession since graduation. I am not aware of any material fact or material change with respect to the subject matter of the technical report that is not reflected in the technical report, the omission to disclose which makes the technical report misleading. This report is based on a study of all information made available to me, both published and unpublished and on my personal examination of the work performed on the property during this program. Dated in Thunder Bay, Ontario this 26th day of March, 2012. Respectfully Submitted,

Katie Sheridan, B.Sc.

Page | 44

Appendix I – Claim & Sample Location Maps

Attached as separate maps and files.

Page | 45

Appendix II – ALS Chemex Certificate of Analysis

Attached as a separate file.

Page | 46

Appendix III – Work Associated Dates and Costs

Dates Expense Total Cost

May-Sept 2011 Senior Geologist $2,800.00 May-Sept 2011 Project Geologist $40,263.50 May-Sept 2011 Senior Geotech $2,500.00 May-Sept 2011 Geotech $33,561.88 May-Sept 2011 Equipment $8,175.00 May-Sept 2011 Field Supplies $3,446.00 May-Sept 2011 Assays $25,275.79 May-Sept 2011 Truck Rental $6,375.00 May-Sept 2011 Fuel $2,527.18 May-Sept 2011 Camp $8,143.60 May-Sept 2011 Food $2,715.32 May-Sept 2011 Mob/Demob $8,000.00

Total $144, 683.94

Claim Total Work Performed

($)

4259737 $1,074.97

4259738 $1,834.17

4259739 $6,913.39

4259740 $8,606.47

4259741 $3,245.06

4260157 $3,103.97

4259743 $3,789.26

4259744 $6,637.92

4259745 $1,531.83

4259746 $4,655.96

4259747 $8,324.29

4259750 $86,010.81

4256210 $2,962.88

4260159 $1,693.08

4260105 $3,789.26

4260104 $510.61

$144,683.94

kelvin ladouceur/michael thompson · 2017. 1. 16. · claim 4252431 is registered in the name of...

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