Technical Report and Recommendations, Reconnaissance and Trenching Program, Assinica Project
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GM 66252 TECHNICAL REPORT AND RECOMMENDATIONS, RECONNAISSANCE AND TRENCHING PROGRAM, ASSINICA PROJECT ITEM 1 : TITLE PAGE Technical Report 43-101A1 Technical Report and Recommendations Reconnaissance and Trenching Program Assinica Project VIRGINIA MINES INC. January 2012 Prepared by: Jean-François Boivin, B.Sc. Ing. Trainee Geological Engineer GM66252. Virginia Mines Inc. And Paul Archer, M.Sc. Ing. Vice President, Exploration REÇU AU MRN Virginia Mines Inc. - 8 FEU. 2012 Ressources naturelles et Faune CENTRE DE SERVICES DES MINES 3 Q AVR, 2012 Dir information géologique 1 1 7 1 4 4 3 1 Assinica Project January 2012 1 ITEM 2 : TABLE OF CONTENTS ITEM 1 : TITLE PAGE I ITEM 2 : TABLE OF CONTENTS II 1 ITEM 3 : SUMMARY 4 ITEM 4 : INTRODUCTION AND TERMS OF REFERENCE 4 ITEM 5 : DISCLAIMER 4 1 ITEM 6 : PROPERTY DESCRIPTION AND LOCATION 5 ITEM 7 : ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA- 1 STRUCTURE AND PHYSIOGRAPHY. 5 ITEM 8 : HISTORY 5 8.1 PROPERTY OWNERSHIP 5 8.2 PREVIOUS WORKS 6 ITEM 9 : GEOLOGY 8 9.1 REGIONAL GEOLOGY 8 9.2 STRUCTURE 8 9.3 ECONOMIC GEOLOGY 9 9.4 LOCAL GEOLOGY 9 9.4.1 Basalts and gabbros 9 1 9.4.2 Rhyolites 10 9.4.3 Mudstones 10 9.4.4 Wackes and arenites 10 9.4.5 Iron formations 11 ITEM 10 : DEPOSIT TYPE 11 ITEM 11 : MINERALIZATION 11 ITEM 12 : EXPLORATION WORK 11 ITEM 13 : DRILLING 11 ITEM 14 : SAMPLING METHOD AND APPROACH 11 1 14.1 ROCK SAMPLES 11 14.2 TILL SAMPLES 12 ITEM 15 : SAMPLE PREPARATION, ANALYSIS AND SECURITY 12 15.1 SAMPLE SECURITY, STORAGE AND SHIPMENT 12 15.2 SAMPLE PREPARATION AND ASSAY PROCEDURES 13 15.2.1 Rock samples 13 ITEM 16 : DATA VERIFICATION 13 1 ITEM 17 : ADJACENT PROPERTIES 14 ITEM 18 : MINERAL PROCESSING AND METALLURGICAL TESTING 14 1 Virginia Mines Inc. Page ii Assinica Project January 2012 ITEM 19 : MINERAL RESOURCE, MINERAL RESERVE ESTIMATES 14 ITEM 20 : OTHER RELEVANT DATA 14 ITEM 21 : INTERPRETATION AND CONCLUSIONS 14 ITEM 22 : RECOMMENDATIONS 14 ITEM 23 : REFERENCES 15 ITEM 24 : DATE AND SIGNATURES PAGE 18 ITEM 25 : FIGURES 20 ITEM 26 : PICTURES 21 ITEM 27 : APPENDIX 22 LIST OF TABLES TABLE 1. SUMMARY OF PREVIOUS WORK PERFORMED IN 32J/11 6 LIST OF FIGURES FIGURE 1: ASSINICA PROJECT LOCATION, 1:7 500 000 FIGURE 2: ASSINICA PROJECT, 1:250 000 FIGURE 3: CLAIMS AND CDC ASSINICA PROJECT, 1:50 000 FIGURE 4: OUTCROPS, BOULDERS AND SAMPLES COMPILATION, ASSINICA PROJECT, 1:25 000 LIST OF APPENDICES APPENDIX 1. ABBREVIATION LIST , ' . APPENDIX 2.Summ.. G- i -"' :°i :•e e • • , r.•-- •.• efiqfrr7S Li ST APPENDIX 3: SAIbIPLES-LIâT S Linn r>> Af2`Î â)1` Ç.btz, 0R-id 1z6Vt;~.k-tZS A'v--b © `Fr-c-fk)~ APPENDIX 4. - . E • • • 4S'AMZ.t~S 03 ,-7 — Virginia Mines Inc. Page iii Assinica Project January 2012 ITEM 3 : SUMMARY The objective of the 2011 campaign was to find the source of three gold anomalous tills situated in the southern part of the Assinica property. A secondary objective of this campaign was to fly over the property in order to find new mineralized outcrops. A total of 18 man/days were invested in the 2011 campaign. Prospecting work has described a total of 5 outcrops and 3 boulders from which 3 samples were analyzed. Geochemical results do not reveal new mineralized zones or anomalous gold content. Considering these results no further work is recommended in the near future. ITEM 4 : INTRODUCTION AND TERMS OF REFERENCE Virginia Mines Inc. began investigating in fall 2005 (Grenier et al., 2005) the central segment of the Frotet-Evans greenstone belt located in the Baie James area. In the summer of 2006, Virginia Mines Inc. undertook a large geochemical survey consisting of till sampling. This work discovered a pristine gold grains dispersion pattern taking its origin in the sedimentary package (Grenier et al., 2007). During summer 2009, Virginia undertook an intensive prospecting, mapping, till sampling and trenching program on the Assinica project. The exploration program based on the previous geophysical and geochemical surveys returned new mineralized boulders and outcrops. In fact, three new Au mineralized boulders were found over the grid area and returned values up to 0.97 g/t Au in grab samples. A channel sample also returned 1.04 g/t Au in a metasedimentary rock. The Virginia Mines 2011 exploration program on the Assinica project was designed to find the source of a gold anomalous till. This anomalous till is situated in the south part of the property. A short intervention of 2 days has been undertaken during 2011 spring. This report provides the status of current technical geological information relevant to the latest Virginia Mines Inc. exploration program on the Assinica project in Québec. It has been prepared in accordance with the Form 43-101F1 Technical Report format outlined under NI-43-101. The report also provides recommendations for future work. ITEM 5 : DISCLAIMER Co-author Jean-François Boivin, B.Sc. Ing. and Trainee Geological Engineer for Virginia Mines Inc. has been involved in Assinica project fieldwork campaing of 2011. Co-author Paul Archer, geological engineer with an M.Sc.A in Earth Sciences and Vice President, Exploration of Virginia Mines Inc. is responsible for the design and is the qualified person for all Virginia's exploration programs. Virginia Mines Inc. Page 4 Assinica Project January 2012 ITEM 6 : PROPERTY DESCRIPTION AND LOCATION At the time of the field work, the Assinica property was composed of 82 claims (Fig. 3) covering approximately 42 km2 located 100 km NW of Chibougamau, James Bay area (Fig. 1 and Fig. 2). The complete claims list with their surface and expiration date is found in appendix 1. Geographical references and SNRC sheets covered by the Assinica property are: Latitude: 50°37' Nord Longitude: 75°13' Ouest SNRC: 32J/11 UTM zone: 18 (nad83) NTS: 484 705 mE 5 608 152 mN ITEM 7 : ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRA- STRUCTURE AND PHYSIOGRAPHY. The Assinica project is located in the James Bay territory between the Assinica Lake to the south, the Broadback River to the west and the Mistassini Lake to the east. For this campaign, field operations were conducted from the municipality of Chibougamau which is located 100 km SE. There is also the Assinica camp which could be accessed by helicopter or by land using an 18 km temporarily access trail. Half of the team and all supplies were brought in using the North road from Chibougamau and a gravel road maintained by Hydro-Quebec to a sand pit located under the power line on the east side of the Pasquale lake at kilometre 140 on the Route du Nord (Fig. 2). From there to camp, men and all supplies were flown in by helicopter. The other half of the team was brought using helicopter from Chibougamau to the property. The landscape of the study area is relatively flat. The property is located in a glacial valley surrounded by low altitude rounded hills. The highest summit ranges at 565 m above sea level. Vegetation is typical of boreal forest composed of tightly packed pine tree. The main area of the Assinica property was burned 10 to 15 years ago leaving large cleared area covered with small silver birch, high alder and packed low bushes. The lower lands are mainly occupied by swamps vegetation and lakes. The hydrographic network is well developed and at the 1: 50 000 scales, the Assinica, Clapier, Saint-Poncy, Savournin, Pasquale and Mineray lakes occupied large area. ITEM 8 : HISTORY 8.1 Property ownership The Assinica property is wholly owned by Virginia Mines Inc. Virginia Mines Inc. Page 5 Assinica Project January 2012 8.2 Previous works Table 1 summarises the exploration work performed in sheets 32J/ 11 to date. Table 1. Summary of previous work performed in 32J/11 Geological Survey of Canada (1942) - Reconnaissance mapping (Shaw, 1942). Consolidated Mining and smelting Co. of Canada (1961) - Reconnaissance mapping, prospecting, sampling and diamond drilling survey for lithium in pegmatite over SIRMAC property (GM: 9428, 10551, 11470, 24590, 25283, 33998 and 52050). Geological Survey of Canada (1966) - Reconnaissance mapping at a scale of 1: 63 360 (Gillett, 1966). Yorbeau Mines Inc. (1968) - Acquiring lithium property and potential evaluation Falconbridge Nickel Mines(1975-76) - Geophysical and diamond drilling survey for base metal (GM: 32937, 33168 and 33169). SDBJ (1979) - Lake sediments geochemical survey for Co-Cu-Fe-Mn-Mo-Ni-Pb-U-Zn in the Assinica Lakes area (SDBJ, 1979). Exploration Nord-Ouest — Mines Northgate (1984-85) - Geological mapping, sampling, geophysical survey and drilling campaign on the south of Gariteau lake (GM: 40779 and 42166). Utah Mines Ltd. (1986-89) Virginia Mines Inc. Page 6 Assinica Project January 2012 - Geological mapping, channel sampling, geophysical survey and drilling campaign on the Saint-Poncy property (GM: 45797 and 49263). Corporation Lithos (1992) - Acquiring SIRMAC property. Ministry of Natural Resources of Québec (1995) - Map compilation and re-analyse of lake sediments samples for Au-Ag-As-B-Ba-Be-Br- Ca-Cd-Ce-Co-Cr-Cs-Cu-Eu-Fe-Hg-K-La-Li-Mg-Mn-Mo-Na-Ni-P-Pb-Sb-Sc-Se-Sm-Sr- Th-Ti-Tm-U-V-W-Y-Zn in the Assinica Lakes area (Beaumier and Kirouac, 1995). Ministry of Natural Resources of Québec (1995) - Geological mapping of the Assinica lake area, NTS sheet 32J/ 11, at a scale of 1 : 50 000 (Brisson and al., 1997) SOQUEM — Pangea Goldfield Inc. (1996-99) - Prospecting, geological mapping, geochemical survey, geophysical survey trenching and drilling campaign over Assinica property and surrounding area (Larocque, 2000).