777 Red River Road, Thunder Bay, P7B 1J9 Tel: (807) 767-3012 Fax: (807) 767-0463 E-mail: [email protected] Internet: http://www.avalonventures.com

Report on the Magnetometer Survey

Blackwell and Durham Projects

Blackwell and Laurie Townships, Ontario

Thunder Bay Mining Division

NTS 52 A 12 SW

Latitude 48036© Longitude 89055©

V 52A12NW0007 2.17670 BLACKWELL 010 RECEIVED

*^^-~? - J -y SEP - 5 ••y t ASSESSMEA; Karen Rees lan Campbell Avalon Ventures Ltd. September 10, 1997 Report on Ground Magnetometer Survey on Blackwell and Durham Properties

TABLE OF CONTENTS

Summary l .0 Introduction l 2.0 Location and Access l 3.0 Disposition 1 4.0 Previous Exploration 2 5.0 Regional Geology 3 6.0 Property Geology 4 7.0 Current Program and Results 5 8.0 Conclusions and Recommendations 6 Bibliography 8 Statement of Expenditures 9 Statement of Qualifications 10

List of Figures Figure l Location Map Following Page l Figure 2 Claim Sketch Following Page 2 Figure 3 Regional Geology Following Page 3

List of Maps c 1 W O |*f Map l Magnetic Postings 1:5000 ^ li b 7 ©ocket Map 2 Magnetic Contours 1:5000 In Pocket RECEIVED

SEP ' *. 199? List of Appendices GEOSCIENCe ASSESSMENT Appendix l Instrument Specifications __ . OrhCt l

52A12NW0007 2.17670 BLACKWELL 010C

September I O, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

1.0 Introduction

The Blackwell and Durham properties are located in Blackwell and Laurie Townships, 55 kilometres west of Thunder Bay, Ontario and represent an exploration target for gold mineralization.

From September to October 1996 and during March 1997, Avalon Ventures Ltd. conducted a exploration program of linecutting and magnetometer surveying as part of a larger exploration program on the Blackwell and Durham properties.

The purpose of this report is to document and interpret the results of the magnetometer survey and to propose an appropriate program for further exploration.

2.0 Location and Access

The properties are located in southeastern Blackwell Township and northeastern Laurie Township approximately 55 kilometres west northwest of the city of Thunder Bay, Ontario (Figure 1). The NTS reference for the claims is 52 A 12 SW, with the property centered at Latitude 48036© Longitude 89G55©. The junctions of Highways 17 and 11 occurs along the eastern boundary of the properties.

Access to the property area is excellent, as shown in Figure 2. It is best achieved by travelling west from Thunder Bay along Trans Canada Highway 17 to the junction of Highway 11, 0.5 kilometres west of , Ontario. From this point, Highway 11 leads westward and crosses the central portion of the property from which several bush roads provide additional access to various parts of the property. The southern portion of the property is reached by travelling westward on a dirt road which leaves Highway 17 across from the motel/restaurant at and provides bridge access across the River. From this point, several new logging roads lead to various portions of the southern half of the property.

3.0 Disposition

The Blackwell and Durham properties are contiguous properties subject to two separate underlying agreements but have been pooled together for exploratory purposes. With the exception of claim TB 1206676 of the Durham property, the claims occur in the southeastern portion of Blackwell Township, and are found on claim sheet G-644. Claim TB 1206676 occurs in the northeast corner of Laurie Township, contiguous to the south boundary of claim TB 1206677 and is found on claim sheet G-669.

The claims are in good standing and are on record at the office of the Thunder Bay Mining Recorder in Thunder Bay, Ontario.

September 10, 1997 Avalon Ventures Ltd. Shebandowan Greenstone Belt

Major Break

Matawin Gold Belt and Area of Figure 3

Blackwell and Durham Properties

Thunder Shabaqua Bay Corners

CANADA """USA AVALON VENTURES LTD. MATAWIN GOLD BELT LOCATION MAP kilometres Report on Ground Magnetometer Survey on Blackwell and Durham Properties

Table l below details pertinent claims disposition information. The claims are illustrated in Figure 2.

Table 1: Pertinent Claims Information

Claim Numbers Units Recorded Assessment Due Holder

Blackwell Property TB 1183027 11 15 Sept 1995 15 Sept 1997 Steve Stares TB 1183028 16 15 Sept 1995 15 Sept 1997 Steve Stares TB 1183029 15 15 Sept 1995 15 Sept 1997 Steve Stares TB 1183030 15 15 Sept 1995 15 Sept 1997 Steve Stares TB 1208083 2 04 Dec 1995 04 Dec 1997 Steve Stares TB 1210332 6 05 Mar 1996 05 Mar 1998 Steve Stares 65 Durham Property TB 1206677 4 11 Dec 1995 11 Dec 1997 Bruce Durham TB 1206676 2 11 Dec 1995 11 Dec 1997 Bruce Durham 6

Subsequent to individual acquisitions, the Blackwell and Durham properties, along with two other properties in Blackwell Township, became subject to the Shabaqua Joint Venture Agreement between Avalon Ventures Ltd. and Green Ice Corporation. Green Ice funded the current work program and can earn a 509fc interest in the properties by making cash and share issuances to Avalon, and by performing exploration work on the properties over 4 years. Avalon is the operator of the work program until Green Ice Corporation has vested its interest.

4.0 Previous Exploration

A review of assessment files for the area indicates that there has been little previous exploration work on the area covered by the Blackwell and Durham properties. Documented previous work is as follows:

1925: T.L. Tanton conducted a regional mapping survey for the Department of Mines.

1975- Noranda conducted airborne EM, geological mapping, ground magnetic, 1979: electro-magnetic and gravity surveys over part of the southern part of the property.

1982: Lacana conducted reconnaissance geological mapping over the southern part of the property.

September W, 1997 Avalon Ventures Ltd. Blackwell "' Property Blackwell Twp 1——————————— Dawson Road Lots Laurie Twp

Durham Hydro Line Property

Highway AVALON VENTURES LTD.

Township Boundary BLACKWELL AND DURHAM PROPERTIES CLAIM SKETCH Property Outline

Claim Line Report on Ground Magnetometer Survey on Blackwell and Durham Properties

1983- Corporate Oil and Gas Co. conducted reconnaissance mapping and soil 1984: geochemistry.

1988: JET Mining conducted airborne magnetic and electromagnetic surveys in the southern part of the property.

1988- Noranda conducted airborne magnetics and electromagnetics as well as ground 1989: surveys over a small area in the northern part of the property. Ground surveys included reconnaissance mapping and soil sampling on north-south claim lines (400 m spacing). Anomalous gold in humus was identified in the central part of the property.

1990: M.W. Carter conducted regional mapping survey for the Ontario Geological Survey, the results of which are documented in OFR 5727 entitled The Geology of Blackwell and Laurie Townships.

1990: The Shebandowan Greenstone Belt, including the subject property, was flown by the Ontario Geological Survey utilizing the Aerodat Magnetic/ Electromagnetic System. Several moderate to strong EM anomalies were detected, occurring within the current property boundaries.

5.0 Regional Geology

The Blackwell and Durham properties lie within the western extension of the Abitibi-Wawa- Shebandowan subprovince of the Superior structural province of the Canadian Shield. The volcanic-sedimentary units of this belt are bounded to the south by granitic terrain and to the north by the Quetico subprovince (Figure 3).

The volcanic-sedimentary stratigraphy can be subdivided into the Burchell and Greenwater assemblages of Keewatin-age (2710-2722 Ma), and the Shebandowan assemblage of Timiskaming-age (2689-2696 Ma). The Burchell and Greenwater assemblages are interpreted to have island arc and oceanic crustal origins, while the volcanic rocks of the Shebandowan assemblage are interpreted to be derived from mantle sources. The Burchell assemblage occurs to the north, is essentially homoclinal and youngs to the north while the Greenwater assemblage occurs to the south of the Burchell assemblage and faces to the south. The Shebandowan assemblage (herein called ©Timiskaming©) is comprised of alluvial- fluviatile sediments, alkaline volcanics and associated alkaline intrusives.

The Timiskaming units occupy two east-west trending fault bounded basins, as shown in Figure 3. The Timiskaming rocks include an assemblage of predominantly fluviatile metasediments with lesser amounts of intercalated shoshonitic intermediate to mafic metavolcanic rocks. The unconformity defining the southern contact of the Timiskaming belt with the older Keewatin volcanic assemblage lies just south of the property. The northern

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Keewatin Stratigraphy Main Break/Splay NTS: 52A12/SW Report on Ground Magnetometer Survey on Blackwell and Durham Properties

contact of the Timiskaming belt is defined by the regional Postan's Fault defining the northern subprovince boundary which also appears to be the locus for extensive gabbroic intrusions.

Regional metamorphic grade is lower greenschist facies, with higher grades up to lower amphibolite facies occurring proximal to intrusive contacts.

The Matawin Gold Belt exhibits strong similarities to the Timmins and Kirkland Lake areas of , both in geological and tectonic evolution. Geological models based upon the gold deposits related to the Timiskaming environments of the Abitibi are now being applied as guides for exploration in the Shebandowan area. Since the mid 1980s, over 100 new gold occurrences have been discovered in the belt, mostly as a result of surface prospecting, which has brought to light the potential for additional gold discoveries and illustrates the relatively unexplored nature of the belt. The identification of this Timiskaming-type of geological setting and related gold mineralization has resulted in the area being re-named the Matawin Gold Belt by government geologists (Lavigne and Scott, 1994).

The Shebandowan belt is host to current and past producers of lode gold deposits (e.g., Ardeen Mine), volcanogenic massive sulphide deposits (e.g., Coldstream Mine) and magmatic Ni-Cu base metals, such as the Shebandowan Mine currently in production by Inco.

6.0 Property Geology

The Blackwell and Durham properties are underlain by predominantly Timiskaming type fluviatile metasedimentary rocks with lesser amounts of intercalated shoshonite volcanic rocks. These rocks are in unconformable contact with older Keewatin mafic metavolcanic rocks just south of the property, and are in fault contact with basinal sediments of the Quetico subprovince along the north central portion of the Blackwell property.

Geological mapping by Avalon revealed that the southern two thirds of the property is underlain by Timiskaming stratigraphy dominated by sedimentary assemblages north of the Shebandowan River and volcanic assemblages south of the river. The Timiskaming sediments are predominantly comprised of weakly to moderately deformed conglomerate, sandstone and argillite units with minor mafic volcanic components. The conglomerates are very similar to the well documented conglomerates in the Kirkland Lake area, being polymictic with clasts including granite, chert, red jasperoids, and volcanics. The unit is clast supported with a sandy, green to purplish matrix, with most of the clasts being well rounded. The sandstone is light greenish in colour with a gritty looking matrix and occasional angular, black argillaceous fragments. The metasedimentary units strike east-southeast and have a subvertically dipping penetrative fabric.

September 10, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

In the area of the Shebandowan River an assemblage of graphitic argillites, peridotites, carbonate-amphibole schists, conglomerate units (resembling those of the Quetico-type more than the Timiskaming-type) and fragmental units with chert and sulphide clasts has been observed on this property and along strike for many kilometres. This unit is interpreted as occupying an east-west fault zone over a width of about 250 metres. A similar assemblage of rock types occurs immediately south of the property and is also interpreted as an east-west fault structure.

The northern third of the Blackwell property is dominated by Keewatin aged metasedimentary assemblages belonging to the Quetico Subprovince and are comprised of well bedded and moderately foliated greywacke and conglomerate units. The Quetico metasedimentary package is interpreted to represent the sedimentary erosional apron derived from the Wabigoon subprovince to the north. The suture zone defining the contact area between the Quetico and Abitibi-Shebandowan subprovinces crosses the northern third of the property and is the locus for the intrusion of massive and medium grained gabbroic sills. This suture zone has been termed the Postan's Fault and probably represents a major crustal boundary. The gabbroic sills are expressed in the airborne data as linear magnetic highs with coincident EM anomalies.

The Timiskaming sequence displays evidence of both regional and local hydrothermal alteration. Iron carbonate and sericite are the most abundant regional alteration minerals and are particularly common in the central portion of the property north of Highway 11. The deformed polymictic conglomerates along the northern contact with the Quetico rocks show a high degree of stretching with clasts commonly showing a 5:1 flattening elongation. Clasts are supported in a sericite-carbonate-chlorite schist matrix which commonly contains fuchsite.

7.0 Current Program and Results

From September to October 1996 and during March 1997, Avalon Ventures Ltd. conducted an exploration program of linecutting and magnetometer surveying as part of a larger exploration program on the Blackwell and Durham properties.

A cut grid which covers the property was established by Place du Lac Linecutting. It consists of approximately 63 kilometres of north-south grid lines spaced at 100 to 200 metre intervals, with stations picketed at 25 metre intervals. A ground magnetometer survey was performed by Phantom Geophysics Inc. over the entire grid. Readings were taken at 12.5 metre intervals utilizing an Omni 4 Proton magnetometer. Digital data collected in the field was downloaded from the field instruments to diskette and plotted using Geosoft contouring software at a scale of 1:5000 (Maps l and 2). Instrument specifications can be found in Appendix 1.

The magnetometer survey identified several linear magnetic high features on the property, trending approximately 115" subparallel to mapped stratigraphic units, but which are somewhat discontinuous. A magnetic high trend in the northern third of the Blackwell

September W, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

property occurs from 11000 N at the northwest end to 9800 N at the southeast end and appears to extend off the map area on the east and west side. The trend is coincident with a gabbroic sill that occurs along the interpreted Postan's Fault at the suture zone between the Quetico subprovince metasediments to the north and the Abitibi-Wawa-Shebandowan subprovince to the south. The discontinuities are observed as northeast trending features, one of which passes through an area which returned anomalous gold from rock samples up to 650 ppb Au.

A discontinuous magnetic high occurs in the south part of the Blackwell property and across the Durham property between approximately 7900 n and 7300 N. In this area, the magnetic highs are coincident with gabbro and oxide facies chert-magnetite iron formation identified in limited outcrop exposure. A northeast trending break in the magnetic trends is coincident with significant gold mineralization, known as the Wedge showing, obtained from outcrop along the road in the south part of claim TB 1208083 of the Blackwell Property. Siliceous, iron carbonatized quartz stockwork with pyrite and arsenopyrite returned values of up to 14.5 grams Au/tonne.

The discontinuous nature of the magnetic trends is interpreted to be caused by structural breaks in the underlying bedrock and is some cases may also represent areas of hydrothermal alteration. The breaks appear to be northeast and correlate well with breaks identified from the government sponsored regional airborne data. The breaks are interpreted to represent cross structures or secondary splays off major regional breaks, such as the Postan's Fault. Regional and property scale compilation work reveals that there are numerous gold occurrences located in proximity to both the major regional breaks and the secondary structures, as shown in Figure 3. Therefore, the identification of both major structural breaks and secondary splays through the interpretation of magnetic data has implications for gold exploration and target definition on the property scale.

8.0 Conclusions and Recommendations

The Blackwell and Durham properties are underlain by predominantly Timiskaming type fluviatile metasedimentary rocks with lesser amounts of intercalated shoshonitic volcanic rocks. These rocks are in unconformable contact with older Keewatin mafic metavolcanic rocks just south of the property, and are in fault contact with basinal sediments of the Quetico subprovince along the north central portion of the property. These rocks show evidence of both regional and local hydrothermal alteration systems which are known to be important aspects of gold mineralization in economic mining camps in Archean terrains elsewhere.

The magnetic survey identified several magnetic high trends which correlate well with gabbro and oxide facies chert magnetite iron formation observed in limited outcrop exposure. Significantly, the magnetic trends show some discontinuity; these breaks in the trends are proximal to major regional fault structures and secondary splays and may represent related zones of hydrothermal alteration.

September W, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

These conclusions are supported by the fact that in other parts of the Matawin Gold Belt, numerous gold occurrences are located in proximity to both the major regional breaks and the secondary structures. Prior to acquisition from the current Vendors the area of the properties has undergone relatively little gold exploration work. The identification of these types of structures on the Blackwell and Durham properties is considered significant and therefore it is concluded that additional work is warranted.

Additional work is recommended to further explore the Blackwell and Durham properties for gold mineralization. Further work on the property would consist of detailed mapping of outcrops in the vicinity of interpreted structural breaks, trenching across the interpreted structural breaks, sampling, induced polarization surveys to define areas of sulphide mineralization and alteration where outcrop exposure is low, and diamond drilling of priority targets.

Recommended Budget

Geological Mapping 55,000 Rock Sampling 52,000 Induced Polarization S12,000 Trenching 54,000 Support 31,000 Truck 52,000 Diamond Drilling (1000 metres) 580,000 Report 56.000 5112,000

September 10, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

Bibliography

Carter, M.W., 1990. Geology of Blackwell and Laurie Townships, . Ontario Geological Survey, Open File Report 5727.

Colvine, A.C., et al, 1988. Archean Lode Gold Deposits in Ontario. Ontario Geological Survey, Miscellaneous Paper 139.

JVX Ltd., 1997. Report on Spectral IP/Resistivity Conducted on the Blackwell-Durham- Kaspar Grid, Laurie and Blackwell Townships, Thunder Bay Area, NW Ontario.

Schnieders, B.R., and Dutka, R.J., 1985. Property Visits and Reports of the Atikokan Economic Geologists, 1979-83; Ontario Geological Survey Open File Report 5539.

Stott, G.M., and Schnieders, B.R., 1983. Gold Mineralization in the Shebandowan Belt and its relation to Regional Deformation Patterns. The Geology of Gold in Ontario, OGS Misc. Paper 110.

September 10, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties

Statement of Expenditures

Linecutting 63.0km@S321 S20,223 Magnetic Survey 63.0km@S90 S5,670 Supervision, Interpretation 10 days 5300 S3,000 and Report Preparation Total S28,893

September JO, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties l O

Statement of Qualifications

I, lan J. Campbell, of 64 Summit Avenue, Thunder Bay, Ontario, hereby certify:

I am a graduate of Lakehead University in Thunder Bay and hold a Bachelor of Science Degree in Geology 1982.

I am currently serving in the position of Vice President-Exploration of Avalon Ventures Ltd.

I am presently employed on a full time basis with Campbell &L Associates Geological Services Inc. of 64 Summit Avenue, Thunder Bay, Ontario P7B 3N9.

I have been employed as an exploration geologist on a full time basis since 1982, and prior to that as a geological field assistant for four field seasons.

I am a Fellow of the Geological Association of Canada (1985) and a member in good standing with the PDAC and the CIM.

Dated in Thunder Bay, Ontario this 10th day of September, 1997.

Ve lan Campbell, FGAC

September 10, 1997 Avalon Ventures Ltd. Report on Ground Magnetometer Survey on Blackwell and Durham Properties 1 1

Statement of Qualifications

I, Karen J. Rees, of 269 Valley Street, Thunder Bay, Ontario, hereby certify:

I am a graduate of the University of Saskatchewan and hold an Honours Bachelor of Science (Geology) Degree, 1984.

I am presently employed as a Geologist with Avalon Ventures Ltd. of 777 Red River Road, Thunder Bay, Ontario.

I have been employed as an exploration geologist for seven years in the last decade by three mining companies.

Dated in Thunder Bay, Ontario this 10th day of September, 1997.

Karen J. Rees, B.Se.

September W, 1997 Avalon Ventures Ltd. Appendix l

Instrument Specifications Instrument Description and Specifications

Scintrex/EDA OMNI IV Proton Precession Magnetometer

The Scintrex/EDA OMNI IV Proton Precession Magnetometer measures the total magnetic field intensity. The instrument was originally manufactured by EDA Instruments of Toronto, Ontario. EDA was later merged with Scintrex Limited of Concord, Ontario.

Physical Dimensions Wt(kg): w x h x d (mm)

Instrument console only 2.8: 238 x 150 x 250 Battery belt (Alkaline) 1.2: 540x100x40 Battery cartridge (Lead acid) 1.8: 235 x 105 x 90 Battery belt (Lead acid) 1.8: 540x100x40

Sensors Remote sensor 1.2: 56diax220 Gradient sensor 0.5 m separation (standard) 2.1: 56diax790 l .0 m separation (optional) 2.2: 56 dia x 1290

Environment

Electronics Operating temperature range -40"C to +550C Relative humidity O to 100 Ve (weather-proof) Sensor Temperature range -450C to +550C Relative humidity O to 100 Ve (weather-proof)

Standard Memory Capacity

Total field or gradient 1400 data blocks or sets of readings Tie-line points 100 data blocks or sets of readings Base station 5000 data blocks or sets of readings

Electronics

RS-232C serial I/O 2400 baud; 8 data bits; 2 stop bits; no parity

Electronic console Enclosure contains electronics and battery pack (if not contained in separate belt). Front panel includes liquid crystal display (LCD), keypad and MODE selector.

Power supply Internal battery pack or external battery belt; or * 12V car battery if used as a base station. Specifications

Dynamic range 18,000 to 110,000 nT. Roll-over display suppresses first significant digit upon exceeding 100,000 nT.

Processing sensitivity (total field) ±0.02 nT

Statistical error resolution 0.01 nT

Absolute accuracy ± l nT at 50,000 nT at 230C. ±2 nT over total temperature range.

Display resolution (total field) 0.1 nT

Tuning method Microprocessor calculates precise tuning. Value utilizing a specially-developed timing algorithm.

Automatic fine tuning ±159fc relative to ambient field of last stored total field value.

Tracking range 18,000 to 110,000 nT

Gradient tolerance 6,000 nT per metre (field proven)

Tuning indicator Descriptor on display (TUNE) commence to flash on and off. Audio alarm is activated also. (New field value must be entered into system).

Display Custom designed, ruggedized liquid crystal display with an operating temperature range of -400C to +550C at 1009& RH. The display contains six numeric digits, two decimal points, battery monitor, signal decay rate and signal amplitude monitor and function descriptors. ~. . . Ministry of Transaction Number (office use) i jntr)rin Northern Development Declaration of Assessment Work V/l l LO l \ \J d M|nes Performed on Mining Land [il 3746 Assessment PFiles Research Imaging Mining Ad, SubMctlon 65(2) and 66(3), R.S.O. 1990

Personal Information collectei ) of the Mining Act. Under section 8 of the Mining Act, the information Is; md correspond with the mining land holder, Questions about this collect tern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sud 52A12NW0007 2.17670 BLACKWELL 900

Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print in ink. A|

K *. *-l 7n* V. - * ^~ C CD . 1. Recorded holder(s) (Attach a list if necessary) btr 1 l Client Number , — TDl^l/^TrTX/l^H S-^v/d S Mres /O *7 jTBVESfL^-E/ J- V lv-*-' Address Telephone Number 3 a9o i^il/ar^ /he Hue, (107)577-3190 Fax Number Tr\JUL4\ (Lw~ &CL 4 , O A/ PIE. (*J1 (W) ^75- 7 99-7 Name ^ Client Number \B*r(Jit(L ^2)urka*Y\ Address Telephone Number ^ox /33C ; //7(ft 7) t*lyiik- /?oac/ f/nO^/} ^ #7""^^*^^ Fax Number ' Timm'tns t @w PHtf 7 J8

2. Type of work performed: Check ( *- ) and report on only ONE of the following groups for this declaration.

Geotechnical: prospecting, surveys, Physical: drilling, stripping, Rehabilitation assays and work under section 18 (regs) D trenching and associated assays Work Type Office Use

A //76 C, UTTl^^c. Commodity M.CLQnC70 m-efef SJUV\J(LU Total $ Value of g . Work Claimed /CS S/ ^)

Perform^ From 01 i 09 9(p To O\ , 09 , 97 NTS Reference Day | Month Ytut Day | Month | Y*v Global Positioning System Data (H available) Township/Area Mining Division ~J~ S/QcAuW/ t /Aur/e. D^xj M or Q-Plan Number Resident Geologist (7 /"* S LI Li t f / /Q C? ~ (PI ' * C? \0lp/ District Please remember to: - obtain a work permit from the Ministry of Natural Resources as required; - provide proper notice to surface rights holders before starting work; - complete and attach a Statement of Costs, form 0212; _ __ - - provide a map showing contiguous mining lands that are linked for IX/C Pj - Include two copies of your technical report. V*______P 1 ^ 1997

3. Pereon or companies who prepared the technical report (Attach a list if necessary) GEOSCIENCE ASSESSMENT OFFICF———— Name . Telephonelone NumberNui © /on \ltnJix rt (?Ql) 747-3O/^ Address Fax Number 777 7?cad (?Q7) Name Telephone Number P7B U9 Address Fax Number

Name Telephone Number

Address Fax Number

4. Certification by Recorded Holder or Agent l, Kgr e M , do hereby certify that l have personal knowledge of the facts set (Print Name) forth In this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, the annexed report is true.

Signature of Mcorded Holdei t Date JLJU) SeW-te7?7 Agent©s Addr Telephone Number Fax Number 777 ZeJ fawr ^807)7^7-30/31 C$07) 7^ 1 - 5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining) to the mining land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form. ^y W M. flfi 9^ */

Mining Claim Number. Or if Number of Claim Value of work Value of work Value of work Bank. Value of work work was done on other eligible Units. For other performed on this applied to this assigned to other to be distributed mining land, show In this mining land, list claim or other claim. mining claims. at a future date. column the location number hectares. mining land. Indicated on the claim map. ukflt *) fe.~* eg TB 7827 16 ha S26, 825 N/A ^24,0001. (| ' 6 ^82t

eg 1234567 12 0 S24,000 0 0

eg 1234568 2 S 8, 892 S 4,000 0 S4,892

1 //33C37 II V693 Woo o V93

2 //?3028 HP ^Voc 4Y00 6 3 //S3029 16 4000 ^000 0 4 //?3030 15 4000 &000 O 5 /20W3 3 BOG goo 0 6 /a /o 333 (o 2VOO ^Voo 0 /5 066 76 1 goo 800 O l. " /c? 06677 4 /6oo ItoOO C) 9

10

11 12 sit e **fi Xfe ti^ *:A 1 13 :-

14

15

Column Totals 28,893 23,^00 0 V?3

aren , do hereby certify that the above work credits are eligible under (Print FuH Name) subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to the claim where the work was done. RECEIVED Signature of Recorded Holder orAgent Authorized In Writing ate KriAJl^L y /cWo ,^SEP 1 5 1997 Sf*f /c/97 ' 7 \i ^—V G^OslwENCE ASSESSMENT 6. Instructions for cutting back credits that are not approv 8cT OFFICE

Some of the credits claimed in this declaration may be cut back. Please check ( v ) in the boxes below to show how you wish to prioritize the deletion of credits: Od 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. O 2. Credits are to be cut back starting with the claims listed last, working backwards; or D 3. Credits are to be cut back equally over all claims listed in this declaration; or O 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary.

For Office Use Only Thunder B ay Received Stamp Mining Division Deemed Approved Date Date Notification Sent SEP t 1 1997 Date Approved Total Value of Credit Approved RECEIVED Approved for Recording by Mining Recorder (Signature) Ministry of Statement of Costs Transaction Number (office use) Ontario Northern Development and Mines for Assessment Credit fA 97M.

Personal information collected on this form is obtained under the authority of subsection 6(1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act, the information is a public record. This Information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 6B5.

Units of Work Work Type Depending on the type of work, list the number Cost Per Unit Total Cost of hours/days worked, metres of drilling, kilo metres of grid line, number of samples, etc. of work Line cu^Lna r^3,O km *3a//**! * 30,323 ^*J y^CLQ/l^/7'C. Si^Vf6 6,3, 0 /t^t * 90/k* 5, 4, 70

ou^u/s/'cv?.—r* — '"-*— - t In'krtyrtmp ^CTV, /O cja uS *300 /cfcLLj 3,063 s/ /fp^oy/ PsfjycLS&'Acm r t

Associated Costs (e.g. supplies, mobilization and demobilization).

^o * * ^6' ?ftb— \/.— ————— Transportation Costs RECEIVE: r* J(i^ vfaSfAJT P t 5 1997 Food and Lodging Costs \ SI nfilTIFNCF ASSESSMEP tt ——————— OFFIOF

Total Value of Assessment Work *m, ?93

Calculations of Filing Discounts: 1. Work filed within two years of performance is claimed at 100(Vfa of the above Total Value of Assessment Work. 2. If work is filed after two years and up to five years after performance, it can only be claimed at SC^/fa of the Total Value of Assessment Work. If this situation applies to your claims, use the calculation below: TOTAL VALUE OF ASSESSMENT WORK x 0.50 Total S value of worked claimed.

Note: - Work older than 5 years is not eligible for credit. - A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying costs: l, ____ F\Q.ren ______f do hereby certify, that the amounts shown are as accurate as may (please print full name) reasonably be determined and the costs were incurred while conducting assessment work on the lands indicated on the accompanying Declaration of Work form as ______^ .f? ^ ^ ______. l am authorized Thunder Bay (recorded holder, agent, or state company position with signing authority) to make this certification. Mining Di vision SEP 1 1 1997 Slgnali Date RECEIVED Sept. Ministry of Ministere du Northern Development Developpement du Nord and Mines et des Mines Ontario

Geoscience Assessment Office November 13, 1997 933 Ramsey Lake Road 6th Floor STEPHEN A STARES Sudbury, Ontario 3290 Willard Avenue P3E 6B5 THUNDER BAY, Ontario P7E 6J7 Telephone: (888)415-9846 Fax: (705) 670-5863

Dear Sir or Madam: Submission Number: 2.17670

Status Subject: Transaction Number(s): W9740.00924 Deemed Approval

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

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

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

If you have any questions regarding this correspondence, please contact Steve Beneteau by e-mail at [email protected] or by telephone at (705) 670-5855.

Yours sincerely,

ORIGINAL SIGNED BY Blair Kite Supervisor, Geoscience Assessment Office Mining Lands Section

Correspondence ID: 1 1545

Copy for: Assessment Library Work Report Assessment Results

Submission Number: 2 .17670

Date Correspondence Sent: November 13, 1997 Assessor.Steve Beneteau Transaction First Claim Number Number Township(s) l Area(s) Status Approval Date W9740.00924 1183027 BLACKWELL, LAURIE Deemed Approval November 12, 1997 Section: 14 Geophysical MAG

Correspondence to: Recorded Holder(s) and/or Agent(s): Resident Geologist Karen Rees Thunder Bay, ON THUNDER BAY, ONTARIO, CANADA

Assessment Files Library STEPHEN A STARES Sudbury, ON THUNDER BAY, Ontario

ROBERT BRUCE DURHAM Timmins, Ontario

Page: 1 Correspondence ID: 11545 ' l

Duckworth Twp. - G-638

ro Nil s^

.-j ** ^

^— i 'I'll - r H ^ -IV- i\) i —f \ l S 1210788 l it-:^;f" -^ VOJ^CD OT(^ VIVoi O" -si tU, '--s i i *f i ~t- CD *.. '--l v*\l! (^ 4-Z^ Ol ^, l s -si O

af O o 12101190 S CD X 1 A. 8 "NJ- raj m CD . /ri S l 8? S 7 i* * ^ i ro PT-1~ 313-1 " "^"1 x•••i. • —— T a- 4* l U l O! .11 l .--' ^1 , -Jv f l i .Jj-_-l ©~Tyr7TL 8 ' ' -J^ L^/L&Z JL2 I x"' -o i—Xt/l'lSm-\ ^-© ^ 1 l -*.i.srO B l* g is 1!!^ x ,K? "i 31 2 111 3 i 8 li'ij ———}.—^——..^j.--j^p- i J-HJ i-s-^trn * h5~rs~^^' s ^-y g , Ol 1 \-h- -1 ^^ i . ~ ' Ci i i -^J 'iJiJ-tirrfcf'-J-i f s a h 3 (D ro jac-~.t-aj:j H 3 f3 ^ -': * s *) s i ' f N V M jr rs^^si ii[vv- PI H \ * -) 01 OD O IS — r 9 i •/- i y jt 1 S X 'ro. i 1173917 +S JH

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Horne Twp. - G-664

Z w M O S S 'O o n J* > z c i?? I ^ Tl ;SE? a0 ? n z^z 2 O r- — to m O- jmz nn S I O "cm -l > O i W C r. i ~' i . '-1 -5 .-33s*1 m 2 r rp ? c m ,-p jo'-j- O) S. .5 :5 ?

.1-

B d B O 3 9

003 T:-.. NOTES LEGEND

NtiM) WrrHDRJMfli FROM DISPOSITION Oskondaga River G- 749 HIGHWAY AND ROUTE No Drift Lake G- 713 OTHER ROADS ONLY TRAILS - iUWWCE RWfTS Projected Line SURVEYED LINtS TOWNSHIPS. BASE LINES ETC LOTS MINING CLAIMS. PARCELS, ETC UNSURVEYED LINES: SURFACE RIGHTS ONLY WITHDRAWN F OM ""LOT LINES - STAKING ORDER W-TB-54/87 NWR. DATED 87/11/05. PARCEL BOUNDARY CLOSED DUMP SITE. MINING CI AIMS ETC - RAILWAY AND HIGHt OF WAY UTILITY LINES NON PERENNIAL STREAM - FLOODING OR FLOODING RIGHTS SUBDIVISION OR COMPOSITE PLAN RESERVATIONS ORIGINAL SHORELINE MARSH OR MUSKEG MINES TRAVERSE MONUMENT

DISPOSITION OF CROWN LANDS

II946I6 TYPE OF DOCUMENT SYMBOL L._ -___ PATENT, SURFACE ft MINING RIGHTS . __ ..^...... * " .SURF ACE RIGHTS ONLY.. __ j.,—.^...... — O 21909 , MINING.RIGHTSONLY^ __ ...,. __ ...... __ , O LEASE, SURFACE A MINING RIGHTS——————— B " .SURFACE RIGHTS ONLY...... ___ H " , MINING, PIG NTS ONLY.., _____ :...... _ . B LICENCE OF OCCUPATION — ,,.,. ____ ...... ^..... —— V ORDER IN COUNCIL .i...... j....l.Jl. _ ...^ ,:..— .. OC I2I0707 12.4653 RESERVATION ___ ,,,. ___ . _ .....^ __ ..,...... ^.. SAND S GRAVEL __ .... __ ...... ___ .. — ...,..,.. LAND USE PERMITS FOR COMMERCIAL TOURISM, OUTPOST CAMPS NOTE: MINING RIGHTS IN PARCELS PATENTED PRIOR TO MAY 6. 19T3.-VFSTED IN ORIGINAL PATENTEE BY -THE' PUBLIC LANDS ACT. R s.O. 1970. CHAP. 380. SEC. 63, SUBSEC 1. 0.257 SCALE: 1 INCH ^ 40 CHAINS 830 O 1OOO 20OO 4OOO 60OO 8OOO

\, I2IOI9I "~——" O 2 0O 2000 METRES DATE OF ISSUE (2 KM)

NOV061997 PROVINCIAL RECORDING 121046 ——OFFICE-SUDBURY—— P.R9 210328 BR9. TOWNSHIP PR 100 /' J AR '9' 830B7 BLACKWELL

M.N.R. ADMINISTRATIVE DISTRICT THUNDER BAY ^- i?IQ331 - ,j - ^^^^ MINING DIVISION 4QTICE: THUNDER BAY LAND TITLES/REGISTRY DIVISION "he Information Inat appears on this map - Dawson oad Lots as been compiled from various sources and rccuracy is not guaranteed. Those wishing )co i THUNDER BAY o stake minina claims should conS'JIt with lg! 1206677 h* Mining Recorder, Ministry of Northern 1210318 '•vetopment and Mines, for additional 1210319 ~ - 649 Ministry of Land rformalion on the status of the lands shown Natural Management ereon. 48" 35'18 Projected" Line S \/ Resources Branch 90" 01' 3 i" oppron. l Ontario

DiU NdMibtr Laurie Twp. G-669 M ARC H.J 982 In Service Dec. G-644

52A12NWD007 2.17670 BLACKWELL 210 1183030

1183028

* 1183029

Sheband©wan River

1210332

120808 1206677

AVALON VENTURES LTD. SCALE 1:5,000

(meters) BLACKWELL AND DURHAM PROPERTIES

TOTAL F ELD POST NGS

DATE: SEPT. , 1997 NTS: 52 A/12

SURVEY BY: PHANTOM EXPLORATION SERVICES LTD Note: Base Removed 58000 nT

52A12NW0007 2.17670 BLACKWELL 7400E 7600e 7800E 8000E 8200E 8400E 8600E 8800E 9000E 9200E 9400E 9600E 9800E

Shebandowan River

DAWSON ROAD LOTS

4-

47ALCW VENTURES LTD SCALE 1:5,000

400 200 O ~i200 600 (meters) BLACKWELL AND DURHAM PROPER!ES TOTAL F ELD CONTOURS

DATE: SEPT. , 1997 NTS: 52 A/12 Map: 2

SURVEY BY: PHANTOM EXPLORATION SERVICES LTD. Contour Interval: 100, 200, 2000 nT r -

52A12NW0007 2.17670 BLACKWELL 230