42D09SE8295 42D09SE00l4 fil MUSSY LAKE010

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REPORTon

CITADEL MINES LIMITEDMOLYBDENUM-NICKEL PROPERTYPlayter Harbour Area, Lake Superior

Sault Ste. Marie Mining DivisionDistrict of Thunder Bay, Ontario

SSM-

Toronto, Ontario

r. O, -P,

OJUN 6 1969

RESIDENT GEOLOGISTSAULT STE. MARIE

December 11, 1968

NOT TO BE REMOVED FROM

THE OFFICE OF THE RESIDENT

GEOLOGIST, ONT. DEPT. OF MINES

SAULT STE. MARIE. ONT.

12D09SE829S 42D09SE00 MSI MUSS "LAKE"

INDEX-

SUMMARY

INTRODUCTION

PROPERTY

ACCESS

POWER

HISTORY

GENERAL GEOLOGY

SHOWINGS

AEROMAGNETICS

SAMPLING

SUMMARY AND CONCLUSIONS

RECOMMENDATIONS

COST

ACKNOWLEDGEMENTS

CERTIFICATE

MAPS

1

2

2

2

3

3

4

5

6

7

8

9

10

12

13

SSM-1383

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SUMMARY

Citadel Mines Limited has acquired an option to

purchase a block of 80 contiguous unpatented mining claims situated

in the Playter Harbour Area, on the north shore of Lake Superior.

The claims cover a 5j mile length of a belt of

greenstone characterized by deep east-west valleys occupying

fault zones and a relatively high band of magnetics.

A molybdenite-bearing quartz body was found in

one of these valleys in the 1930's and four trenches put down.

During this past summer and fall the deposit has twice been

sampled with encouraging results,

A program cFtimated to cost S32, 500 has been

recommended:

1. To sample and delimit the known molybdenite-

bearing quartz bodies using BX sized diamond drill core.

2. In conjunction with this that magnetic and

electromagnetic surveys be conducted over the valley bottom

for at least one mile.

3. That anomalies found by the geophysical

surveys bc investigated by diamond drilling.

1 *.''.t,

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INTRODUCTION

Citadel Mines Limited has acquired an option to

purchase a block of 80 claims, covering an old molybdenite and

a zinc-nickel-copper prospect, located in the Playter Harbour Area

of Lake Superior.

PROPERTY

The property on which Citadel Mines Limited holds

an option consists of 80 contiguous unpatented mining claims located

in the Sault Ste. Marie Mining Division of Ontario and shown on the

Ontario Department of Mines Plan No. M-29.

These claims were recorded on July 12, 1968 and

have been tagged. Their numbers follow:

S.S. M. 103273 to S.S. M. 103284 incl. 12 claims

S. S. M. 103303 to S. S. M. 103370 incl. 68 claims

Total 80 claims

ACCESS

The group lies east of Playter Harbour on the

north side of Lake Superior, about six miles south of Heron Bay,

Ontario. Playter Harbour is'accessible in summer by boat from

the mouth of the Pic River or float planes based at White River

44 miles distant. A trail, about 2 miles in length, leads from

the beach at the east end of Playter Harbour to the molybdenite

5

showing. Across the mouth of the Pic River, where the motor

road ends, a trail about 5 miles in length leads to the same showing.

This trail with a little work could be made into a tractor road and

provide an all season route to the property. Access, at present,

to the copper-nickel showing is most easily gained by flying

from White River.

POWER

The new transmission line for the Inter-Provincial

Power Grid System passes over the copper-nickel showing. Power

is expected to be turned on in late 1969 or early 1970.

HISTORY

The molybdenite showing was first staked for gold

around 1930. No gold or silver was found and with no interest in

molybdenite, work ceased.

In late 1930's the showings were reportedly

.investigated by Consolidated Mining and Smelting Co. for

molybdenum. Rock trenches were put down and bulk samples

taken, but the results of this work are not available.

The clainvgroup containing the molybdenite showing

was subject of a report by Mr. D. M. Arnott, P. Eng. dated 17th

September, 1965. Mr. Arnott spent 5 days on the property tying

SSM-1383

p

in and mapping the showing and examining the geology of the

claim group.

Kennco Explorations Canada sampled two of the

rock trenches put down on the quartz body in July 1968.

Later on September 21, 1968, Dr. T. C. James

of W. G. Wahl Limited, sampled the four trenches.

The copper-nickel showing was dibcovered late

in the fall of 1965 and was partly opened up by two rock trenches,

20 f co t ?part.

GENERAL GEOLOGY

From geological maps Nos. 40-d and 41-j of the

Ontario Department of Mines the claim group is shown to be

underlain by undifferentiated basic volcanics of Keewatin age.

Intruding these arc Algoman feldspar porphyry dikes. All the

above are cut by late diabase di kcs

The predominant rock typcsobservod on the ground

were basic lavas that have been altered to hornblende schists. In

and around the vicinity of the copper-nickel showing graphitic tuffs

were observed.

Several east-west ridges cross the property and

are separated by deep narrow valleys. Wherever rock has been

i i

seen in the floor of these valleys it is strongly sheared and the

evidence is that they arc caused by regional faulting. This

feature stands out on the aerial photos, which also show a

number of oblique lineaments crossing the cast-west valleys.

SHOWINGS

1. The molybdenite showing is presently of the most

economic interest.

The showing occurs on the bottom of one of the

deep cast-weat trending valleys, in the southeast corner of claim

S. S. M. 103306. It consists of an east-west striking quartz vein

which has been c-xposed over a length of 133 feet before1

disappearing under overburden at either end. Coarse grained

amphibolite forms the north wall, while that on the south is

biotite schist. Both walls are highly sheared in the vicinity

of the vein. At no place are the contacts exposed, though one

trench has been sampled over 40 feet. A 10 foot creek prevented

further trenching to the south. The dip of the quartz vein appears

to be steeply to the south, while the schistose wall rock apparently

Hips steeply to the north.

The strong fault zone in which the showing

occurs is topographically defined for several miles. About

2500 feet to the east an outcrop of quartz is exposed in the bed

i ?

of the creek. To the west, 1500 feet away, another outcrop of

quartz occurs.

Molybdenite is present in significant amounts

and is directly proportional to the degree of fracturing. It

ranges from 1/4" thick in strong fractures to disseminated

molybdenite associated with incipient fractures in quartz that

otherwise appear massive. The fractures tend to be parallel

to the strike of the vein,

2. The copper-nickel occurrence lies near the

cast boundary of claim S. S. M. 103322 in another of those

narrow east-west valleys. The valley is covered with deep

overburden and the trenching only exposed 16 feet of the north

side of the mineralized zone, which judging from the topography,

could bc 60 feet wide.

The two trenches exposed a highly sheared

graphitic tuff well mineralized with pyrite, pyrrhotite and minor

chalcopyrite. Only low copper and nickel values were obtained

from here, but much of the zone remains to be tested.

AEROMAGNETICS

The government aeromagnetic map entitled "Heron

Day" and numbered 2156G shows a strong, persistent cast-west

j

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anomaly running the length of the claim group and extending

beyond it for around l 1/2 miles. Its width is approximately

that of the property and it stands out above a broad plain of

readings 1000 to 1500 gammas lower.

SAMPLING

No records are available for the original bulk

sampling carried out by Consolidated Mining and Smelting

Company in the 1930's, on the molybdenite showing.

On July 15th of this year Kennco Exploration

Canada Limited made an examination of the molybdenite

showing and obtained;

Location Type of Sampling Length

0. 21ty MoS

0. 567c MoS,

Average 40. O 1

W. branch Main Tr. representative grab 35. O 1

On September 21, 1968 Dr. T. C. James took bulk and

chip samples from the four trenches as described in the report by

B. M. Arnott. There were only 3 samples taken and it i t s urmised

S S"', i r- l o

F

E. branch Main Tr. representative grabN to S

2. 0'6. 0 7. 0

25. 0

2. 640. 09 0. 100. 08

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that sampling from the two shorter trenches has been combined

in one sample.

This sampling resulted in:

Bulk Samples Chip Samples

No.

316 318 320

Wt.

600 690 690

Length

31' 37' 49'

ft MoS2

0. 07 0. 11 0. 17

VrPbS

0. 057 0. 068 0. 034

No.

317 318 321

Length

31'37' 49.

7r MoS2

0. 29 0. 16 0. 20

Average, weighted for Average, weightedLength 0. 12"ftMoS2 for length 0.

The chip samples were taken from each fragment constituting

the bulk samples.

Mr. A mott 1 s sampling of the 16 feet of the copper-nickel-

zinc showing exposed in the trenching ran 0. 95^c Zn, 0. 06^r Cu and

0. 057r Ni. This could represent only the fringes of the zone as

from the topography the zone is thought to have a width of around

60 feet.

SUMMARY AND CONCLUSIONS

The molybdenite showing is associated with a large

quartz vein occurring in a strong fault zone that can be traced

for miles. The valley of the fault zone is mostly overburdened

but three exposures of quartz occur over a length of 4000 feet.

SSM-1383

At the one exposure opened up molybdenite occurs

over .1 width of at least 40 feet. The amount of mineralization is

directly proportional to the degree of fracturing, which runs

parallel to the vein.

The sampling results from the one exposure opened

up are definitely encouraging.

The exploration possibilities of finding other fractured

molybdenite-bearing quartz veins are deemed excellent. Some of

these a re:

(a) Along the fault zone in which the known showings occur.

(b) The locale of the conjunction of the east-west shearing

with oblique lineaments.

(c) Other deep east-west valleys, which may represent

other fault zones and contain other molybdenite-

bearing quartz veins.

While low, the copper-nickel-zinc values are of

interest as it is likely that only the fringe of the mineralized zone

is exposed and the geological environment is good.

RECOMMENDATIONS

For the present that all exploration be directed

toward finding an economic molybdenum deposit. To this end that

the following be carried out.

S S.M -

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L That the presently known quartz bodies be sampled

by, 50 foot spaced, BX sized diamond drill holes.

2. That in conjunction with this, electromagnetic and

magnetic surveys be carried over the valley floor

for at least one mile. The spacing of the lines to

be at 50 foot intervals to start with and later the

spacing to be dictated by the experience gained.

The quartz bodies should show as magnetic lows

and with the fracturing running parallel the vein

the larger molybdenite fractures should give an

electromagnetic response.

3. That a little step-out drilling be done to test

anomalies picked up in the survey.

4. That further exploration await the results of this

initial phase.-

COST

To carry out this initial phase of exploration the

cost is estimated to be:

1. Diamond drilling - 3000 ft. of BX core@ $S. 5 0/ft. $l6, 500. 00

2. 150 core trays @ S2. 00 per tray 300. 00

3. Snowmobile and sled 1,200.00

r3

11

4. Tent and frame 14' x 18', plywood floors and ten test walls or completely ten touted (roof plywood and ten test), Coleman oil stove, lantern, bunks, :; mattresses, shovels, pails, hammer etc. | l, 400. 00 jt

IS. Electromagnetic and magnetic surveys 1,500.00

"** 6. . Bulldozing out trail to make tractorroad - 5 miles 2, 000. 00

7. Supervision, engineering, assaying,

transportation, core splitter, sample bags, gas and oil, meals, contingencies 9, 600. 00

tj

Total 3 32,500. 00

Respectfully submitted,

G. E. Moody, B. Se. , P. Eng.

Toronto, Ontario

December 11, 1968

SSM-1383

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PGHD CONSULTANTS LIMITED !

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ACKNOWLEDGEMENTS

Ontario Department of Mines - Vol. XL, Part 2 , 1 931, entitled"Geology of the Heron Bay Area, Districtof Thunder Bay"

- Map 41-J - "Heron Bay -White Lake Area"

Reports by B. M. Arnott, P. Eng. dated September 17, 1935 and February 9, 1966.

Personal communique Kennco Explorations Canada Ltd.

Geophysical Paper - Heron Bay - Map 2156G.

Aerial Photos of the property.

Report by Dr. T. C. James dated September 27, 1968.

C--'

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-- ""CERTIFICATE \

t.i

l, George E. Moody, of the Town of Beaverton, in ij

the Province of Ontario, hereby certify: \

1 1 1 -1 1

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1. That I am a consulting mining engineer with offices situated at 541 Osborne Street, Beaverton, Ontario and at Suite 209, 185 Bay Street, Toronto, Ontario.

2. That I am a graduate in mining engineering from the University of Alberta (1931) and have practised my profession continuously since my graduation.

3. That I am a member of the Corporation of Engineers of the Province of Quebec and a Fellow of the Geological Association of Canada.

4. That l have no direct or indirect interest, nor do l expect to receive any direct or indirect interest in the property described herein. I do not own beneficially, directly or indirectly any shares in Citadel Mines Limited nor shares in any affiliate of that Company.

5. That my report on the Playter Harbour Areaproperty, situated in the Sault Ste. Marie Mining Division and shown on Plan M-29 of the Ontario Department of Mines, is based on:

(a) Ontario Government Geological publications and maps.

(b) Reports on the property by B. M. Arnott, P. Eng. dated September 17, 1965 and February 9, 1966.

(c) Report by Dr. T., C. James dated September 27, 1968.

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(d) Personal communique Kennco Explorations Canada Ltd.

(c) Data in the Company's files.

DATED at Toronto this lith day of December, 1968.

G. E. Moody, B. Se. P. En g.

SSM- 1383

42D09SE829S 42D09SE0014BI MUSSY LAKE020

XL DIRECTOR l '-.'.'-fi UAt^,.-*

SUMMARY REPORT ON CITADEL MINES LIMITED

MOLYBDENUM-NICKEL PROPERTY Playter Harbour Area, Lake Superior Sault Ste. Marie Mining Division District of Thunder Bay, Ontario

Toronto, OntarioDecember 11, 1968

Summary Report

The following summary is provided by G.E. Moody, B.Sc.,P.Eng

whose full report is available in the Public Files of the

Ontario Securities Commission.

Citadel Mines Limited has acquired an option to purchase a block

of 80 contiguous unpatented mining claims, situated in the

Playter Harbour Area of the Sault Ste, Mining Division of

Ontario.

The property is presently accessible by a trail from the mouth

of the Pic River, or by boat from there to Playter Harbour,

and thence by a 2 mile trail to the molybdenite showing.

Planes, based at White River can land at Playterjs Harbour.

The claims cover a 5^ mile length of a belt of greenstone

characterized by deep east-west valleys occupying fault zones

and a relatively high east-west band of magnetics.

In one of these valleys a molybdenite-bearing quartz body

was found. Consolidated Mining and Smelting put down four

trenches on it in the late 1930's and bulked sampled the

deposit, the results of which are not available.

SSM-138 S

- 2 -

In 1968 two companies ' iinpled the showing and obtained encouraging

result^ over widths up to 40 feet. The valley is heavily

overburdened and the full width and length of the quartz body is

not known. Untested quartz exposures lie respectively 2,500 feet

to the east and 1,500 feet to the v;ost,

In view of the above it is recommended that sampling and

exploration of this showing be carried out using BX sized drill

rods. That an electromagnetic and magnetic survey be carried

out along this valley bottom to help in delineating the known

quartz occurrences and to help pick up other bodies. Any

anomalies picked up are to be tested by diamond drilling.

Further exploration will be contingent on results gained during

this initial program.

GHD Consultants Limited,

G.E. Moody, B.Sc.,P. Eng.

Toronto, Ontario December 11, 1968.

SSM- 1033

t20e9SE8295 42D09SE00HB1 MUSSY LAKE

CLAIM

S. S.

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U 103273103274103275103278103279103280103281103282103283103284

1. 103303103304ion 0 5umo(.103307103308103 3 (H103410103311103312103313103314103315103316103317103318103319103320103321i.. 33241033?'-.

103326103327101328H'^329

, . 0103331103332

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CLAIMS A F

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CITADEL MINES

DAYS

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LIMITED j

fCLAIM

. S. S. M. 10333310333410333510333610333710333810333"103340103341103342(0334310334410334-10334610334710334 S10334')10335010335110335210335310335410335510335610335710335810335"103360103361103362103363103 3 (vi1033 (vi10336610336710336810336'i103370

RESIC-NAL DIRECTOR

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TO EACH OTHER.

##ONTARIO

THE MINING ACT REPORT OF.WORK

A ••eerete fern l* required fer eech tye* ef w** te V* feeerdee.

To the Recorder ef . Di vi* Ion

C 2??tii tf •••••fTfrivt ..*M*ie ef Recorded Holder. P t, M iner'(Licence

.. .... ..TMV. rf^ft^ttk^'. G^X-.' Sfe * ** 'XJZZ^ftfrs Gtrfc,".................................^..^.^^^......^.. ..... ...... . .. ...................^

de hereby report the performonce of ................./?.5?................. doy* of , ,a}.J.K.(jS.R.(f),4,K'.frKj2type of work

not before report d to be applied on the following contlfuout clolm*

Claim No. Day* Claim No. Day* Claim No. Day*

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Ail the work wo* performed on Mining Cloim (i) ....^..^/..../.ff..^.^^/^.:..............................................(In the COM of geological ond/or geophyticol survey (s) where more than 18 claims are involved attach a schedule)

READ CAKtFULLY: THE FOLLOWING INFORMATION IS REQUIRED BY THE MINING RECORDER.

Fer Manual Work, Stripping or Opening up of Mines, Sinking Shafts or Other Actual Mining Operations - Names andoddresiM of the men who performed the work ond the dates ond hours of their employment,For Diamond ond other Core Drilling - Footage, No. ond angle of hole* ond diameter of core. Name ond address ofowner or operator of drill. Dates when drilling wan done. Sign*d core log and sketch in duplicate.For Compre**ed Air or Other Power Driven or Mechanical EquipmentType of drill or equipment. Names ond addresses of men engaged in operating equipment ond the dates and hours oftheir employment.For Power Stripping - Type of equipment. Name ond oddrei* of ovner or operator. Amount expended. Date* on whichwork wa* done. Proof of actual cost mutt be submitted within 30 day* of recording.With each of the above type t of work sketches ore required to (how the location ond extent of the work in relationte the nearest cieim poit. In the cose of diamond or other core drilling the sketch *utt be submitted in duplicate.Fer Geological ond 6eophy*lcel Survey - The now e i ond oddrette* of men employed o* well os ditefi. ty***?*t iinstrument u*ed in the case of geophysical survey. Reports and maps in duplicate must be fill,within 60 days of recording.For Lend Survey - the name and address of Ontario Land surveyor.

Tiie Mining Act Certificate Verifying Report of Work

L..^f..xv......3..6.-*......3.to.^.f/^^(Post Office Address) '

Kor eby certify:

1. That l have o personal ond intimate knowledge of thu foctt tet forth in the report of work annexed here to, having performed the work or witnetted some during and/or after its completion.

2. That the annexed report it true.

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LAKE SUPERIOR

CLAIM GROUPI MAP SHOWING

LOCATION!- ACCESS ROUTESCITADEL MINES LTD

HERON BAY AREA. ONTARIO SCALE: 1.INCH - Z. MILES

l

PLAY HARB

MfDRO- ELECTRIC

POWER UN

MOHC^DENUU SHOW o,

NI-CU SHOWING

Late Diabase dyke

Algoman granite and gnel

Keewatin ba*ic volcanic*(some Algoman intrucives)

CITADEL MINES LTD-PROPERTY a

GEOLOGY MAP -

GtnFcONSULT AMICE i.T*

•CALK l INCH* 1/2 UU.C